Dollars in development and current significance

Dollars in development and current significance

1944 became U.S. dollars by the Bretton Woods system its worldwide recognition as master, transaction and reserve currency, number one. The USD has been fixed exchange rate for the interstate commerce as established. Despite the end of gold convertibility in 1971 by President Nixon (the U.S. gold reserves were located no more dollar bills in circulation to cover) remained the dominant position is retained. Even after the introduction of the € $ 1,999 presented to the U.S. strongly at first, large trade deficits, inflation, budget deficit and the mortgage crisis in 2007 but in 2002 left the dollar from collapse.

Could the dollar in 2000 to 1.21 euros will be charged, he reached in 2008 with 0.62 euro a low point. At the present time (April 2010), sees the dollar recovered slightly ($ 1 = 0.736 €). But even as a reserve currency, the USD has stagnated at about 60% worldwide, while the euro high growth rates. This loss of international importance and thus provides for revenue declines in international lending and foreign exchange.