Eli5: Why is the U.S. Dollar so powerful?
In: 208
It’s where everyone in the world wants to shop. You need dollars to shop/do business there.
You gotta think of countries like picky vending machines. Every country has a menu and you have to pay in THEIR currency to get the vending machine to do something (exceptions exist of course, especially with the dollar itself).
The US machine wants dollars only, and it has a VERY large and extensive menu. The machine also breaks down very infrequently and generally most items are in stock.
So it’s a good bet to keep some dollars around since most likely, even in rough times, you can purchase some things you might not otherwise be able to get.
Latest Answers