Do u know why world trade only accept USD instead of Sterling pound is it because of sterling not so strong?

Question

Do u know when did USD gain popularity over the world

Answer 1

The strong or not strong expression is not really relevant in world trade. What is important is the stability and the rate of change between the time you buy/sell and the time you have to pay. In financial affairs the sterling pound is still very strong. But it is a currency on the way out in the long term. The UK economy is only relevant within the framework of the European Union. This means that the EURO, €, is the best alternative for transactions in Europe. The dollar is of course strong and is use as reference currency for many countries (they compare with the dollar and have reserves - money saved - in dollars). But even there, the tendency of many countries is to move to Euro. The Chinese and the Indian currency are also very important. In the last years a very stable currency has been the Brazilian Real. Finally on the dollar, there is a growing feeling that the war in Iraq is eating up the US economy. Thus people saving money in currency are giving strong indications of moving towards the EURO.

Answer 2

Basically the reason is that the US economy is the largest (some would say strongest but in this case it's the size which matters). This means that there are more US dollars in circulation than any other currency, which in turn means that they are easiest to exchange. The US economy is about six times the size of the UK economy.

Prior to the dissolution of the British empire, the Pound Sterling was of course the currency of the largest economy. It's hard to put an exact date on when the USD became the currency of choice in international trade, as obviously it was a gradual transition, but I think you could say that it started with the First World War, and was largely complete by around 1950.

Answer 3

All wrong, 2 main reasons why Sterling is no longer the 'big daddy' of world currency

Pound Sterling is infact a scottish invention, the rest of the UK (pre decimilisation) was based on LSD (latin abbreviation for pounds, shillings and pence)

After February 1971 the UK (tory government) decided to 'standardise' British currency as part of the 'decimilisation' policy, so they took the scottish currency systems as their own

The British currency (pre decimilisation) was dead in the water anyway, due to the UK withdrawing from the 'gold standard' in the late 60's, owing to possible 'devaluation' of the british currency

For those that don't remember or were'nt around (like me) the GOLD STANDARD was somewhat similar to the precursor to the ECU, namely EMU (European monetary union) but with a larger remit, namely encomapssing non euro currencies as well

The other reason why Pound Sterling is no longer the 'big daddy' of internation trade is because those backward retards known as the labour government (UK) are still fannying and phaffing about whether the UK should join the euro or not, that is what is stopping the Euro eclipsing the USD, the euro needs an economy as inportant and the UK's (europe's largest after germany) as part of the euro zone/club to give the euro any credence in international trade and finance

Answer 4

Firstly, half the world's trade is in the black market and in that market the only determinant is who has the biggest gun to protect its interest? In other words the country that can backed its sovereign legality with the strongest military power also has the strongest currency. Don't listen to the crap that the economist and politician tries to tell you about size or strength of economy and trade. That's what they teach you in school and that's what they have to tell you for their legitimate reasoning. The truth is simpler. The day that the US becomes a wimp of a military power will be the day that the mafia will dumped the USD which will also be the day that the USD died as a reserve currency. May it never come.

Answer 5

pound sterling in a minor currency and has no worldwide reputation that the Dollar has.
The Euro is a little 'bigger' but the dollar will stay for a long time.
1783 is when the dollar started but the international presence must have started when gold first traded globally and also when oil started being a big global seller. Not sure when this things happened. Maybe before 1900

Answer 6

it reflects the strength of the US economy in the 20th century. Sterling was an important currency especially for inter commonwealth / empire trading, but after the first world war the US dollar became the interantional trading currency. it became THE important currency after the second world war, when its arguable that the USdid its utmost to ensure that the British Economy didn't reagin anywhere near the power and influence it had enjoyed previously. This is shown by the treatement of the UK as opposed to France, Germany & other continental European countries which were given Marshall Aid to enable thoise countries to recover. Admittedly the Brits did more to destroy their own economy with introduction of nationalistion or key industries (steel, shipbuilding, transport [road and rail] etc.)

The US economy is many many times the UK (I think its soemwhere in the region of 10..20 times not sure.

it refelcts the fact that the US economy is the dominant importer / exporter (although exports have become less significant. China in particular pegged its exchange rate agaianst the US dollar.

Answer 7

Because the US has ten times the amount of trade with countries across the globe than the United Kingdom.
This means more people are paid or transact with the dollar as mode of payment than they do with the pound sterling.

Answer 8

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Answer 9

Probably because the pound (£) is that much stronger than the dollar ($) at the moment, rather than the other way round! Currently, there are nearly two dollars to the pound - that's very, very strong for the pound, and great for spending money in the States!
I also think it depends who you do business with as to the currency they'll accept.

Answer 10

No, it's just that the greenback is a generally accepted currency in the world, because it's abenchmark for value and stability .... and is used to price many global assets, from oil, to gold to coffee ....

Sterling isn't