I understand that the demand increased for dollar in the past couple of years but still, with the recent 40% increase in its supply I would’ve expected some sort of a drop in value.
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It’s relative increase.
The rest of the world turned on the printing press too and also didn’t produce as much for 2 years. And in times of shit like this, people look for some kind of *safer* reserve instead of their local dollarydoos and eurocoins, which they can feel losing value day by day, each time they go to the shops. America is still seen as relatively stable and safe, at least compared to the trash I’m being paid in.
So it increases in relative value. It’s not that you didn’t devalue your currency and print a tonne, its that the rest of the world did too and is in for some hard times and economic trouble, causing them to flee towards the us dollar.
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