The main currency of the world is the currency that exists in all countries of the world. This is the currency that is traded on exchanges. It is to her that international treaties are concluded. There are other significant currencies that are accepted for making global transactions. The most popular currencies are the US dollar, euro, and yen.
According to the International Monetary Fund, the US dollar is the most popular. This makes it the world's most important currency.
The next major currency after the dollar is the euro. It accounts for 20% of the central bank's known foreign exchange reserves, while the dollar accounts for 60%!. Unfortunately, there is little chance that the euro will overtake the dollar and become the main currency in the world.
The relative strength of the US economy supports the value of the dollar. This is the reason that the dollar is the most powerful currency.
HOW DID THE DOLLAR BECOME SO POPULAR?
It started before the First World War. In 1913, the United States created the Federal Reserve Bank due to the fact that the country had an unstable currency system. As a result, the US economy has become stronger than the best economy in the world. Which at that time was in the UK. However, the UK was still the center of world trade, and most transactions were conducted in British pounds. In addition, at that time, most developed countries pegged their currencies to gold to ensure the stability of currency exchanges.
However, when World War I broke out in 1914, many countries abandoned the gold standard to pay for military expenditures in paper money, which devalued their currencies.
After 3 years of war, Great Britain was first faced with the problem of taking money. Not only did the UK need money, but almost all countries needed it. At this point, the United States comes to the rescue. The United States has become the preferred lender for many countries. By then, the dollar had replaced the pound as the world's leading reserve. And from that moment on, the dollar became the main currency in the world!