Role of Dollar in Today’s Global Financial Markets

Essay: Role of Dollar in Today’s Global Financial Markets | Merits and Demerits of a Dollar Being a Global Reserve Currency
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Essay: Role of Dollar in Today’s Global Financial Markets | Merits and Demerits of a Dollar Being a Global Reserve Currency
Among the three global or reserve currencies, the U.S. dollar tops the euro and the yen in terms of stability. This stability, which has been maintained by the robust economy of the United States, makes it attractive or the currency of choice in the financial markets. The dollar is also used as cash in countries that have accepted the U.S. dollar as their legal tender. Other countries continue maintaining their currency within a tight range in relation to the dollar thus reflecting the importance of a dollar in global financial markets. Dollar also dominates in the foreign exchange market and a majority of forex trading platforms in the world relies on the U.S. dollar. Only global/re...