why do the U.S. dollar is the universal currency?

Question

Is it because of these country is very.........

Answer 1

Because (1) the U.S. is the largest economy in the world, and (2) currency controls in the U.S. are virtually non-existent.

Answer 2

before, it was the british pound as the universal currency. The post World War II period saw the british economy in ruins with the infrastructure bombed, so too was confidence with the currency at a low. On the other hand, the US with its physical isolation was left relatively unscathed by war, its industrial might ready to be turned to civilian purposes. This then lead to the US dollar rise to prominence becoming the reserve currency of choice and staple to the international dinancial markets.

Bretton Woods came about in July 1944 whan 45 countries attended at the behest of the US a conference to formulate a new international financial framework. Named after a resort hotel in New Hampshire, the Bretton Woods system formalized the role of the US dollar as the new global reserve currency with its value fixed into gold and the US assuming the responsibility of ensuring convertibility while other currencies were pegged to the dollar.

Answer 3

The US dollar is more acceptable because of its popularity which no other currency has got till now. The US have so much impact and influence in this World. Whatever affects US affects the World too.Whether it is diasaster, war or even aliens. Everyone talks about US , there is so much Hype about them and the people and their products are all around the World.
Almost all the people in this world are some way or other related with US products or their people. You can even test it for yourself. Check everything you got, there will be something that is related with United States. It may be a US company product or service. Atleast you must be drinking coke or pepsi. lol

Answer 4

generally, nearly every country in the world has some financial dealings with the US therefore must deal with dollars. So it is easy to put local currency in terms of dollars so all countries have a base line to compare currencies