Global Material Economics. U.s. Dollar The World’s Reserve Currency

Global Material Economics
The U.S. dollar remains the world’s reserve currency. Is it good for the United States, and if so, why?
Having the U.S. dollar as the world’s reserve currency has had its advantages as well as disadvantages. The U.S. has greatly benefitted from having its currency be accepted worldwide and be used as a base currency. When companies and countries all over the world transact with the dollar, this is advantageous to the U.S. One thing this does is that it creates liquidity, which makes it easier for U.S. institutions and companies to access financial assets like loans. Increasing liquidity for the U.S. currency is also advantageous for the country because it makes it more appealing to, for example, the foreign exchange market. Today, the U.S. dollar boasts of being the most traded currency in the foreign exchange market, and this is attributed to the currency’s liquidity. So, as more people, countries, and companies open up to the idea of using the U.S. dollar in their transactions, doors of opportunity are opened for the U.S.
Another benefit accrued to the U.S. for having the dollar as the world’s reserve currency is that it makes import of goods and services easier. Unlike companies from other countries, U.S. companies can simply pay for their goods and services with paper or the electronic equivalent. So, life for U.S. citizens has been enhanced because of other countries’ willingness to use or peg their currencies to the dollar. If, for example, a company in the U.S. wants to import microchips from a company...