Topic > Essay on Dollar Exchange Rate - 670

Every day in the United States about 38 million banknotes of various denominations are issued with a total amount of about 541 million dollars (Facts about US currency). Dollars carry profound consequences both for the United States and for other countries. The increase in its rate relatively reduces the volume of export earnings in dollars, which often leads to a more significant fall in world prices, especially raw materials, than the change in the exchange rate. On the contrary, the decreasing dollar rate serves as a powerful tool to promote the growth of American exports and fend off US competitors in foreign markets. At the same time, due to rising prices, imports into the United States are limited. Therefore, for the United States, changes in the dollar exchange rate still bring benefits and advantages. The reduction of the leadership position of the United States in the world economy is aided by the international role of the dollar, which remains the main means of reserve and settlement in the world monetary system. The foreign exchange reserves of the central banks of other countries consist of 61% of dollars, almost 2/3 of calculations in world trade are carried out in dollars; the dollar serves as a measure of the value of many important goods (e.g. oil) in the world market; 3/4 international bank credits are made in dollars (Aleksandr Popov). Changes in the dollar exchange rate have profound consequences for both the United States and other countries. The increase in its rate relatively reduces the volume of export earnings in dollars, which often leads to a more significant fall in world prices, especially raw materials, than the change in the exchange rate. On the contrary, the decrease in the dollar rate serves as a powerful tool to promote the growth of American exports and to push... middle of paper... into the global movement of monetary resources at the heart of internationalization. The international role of the dollar lies in the monetary policy of the United States, which remains the main reserve and settlement currency in the world monetary system. The US dollar is used in most international transactions, so what happens to the US economy will be influenced by international financial trends. resources. For the United States it serves as a "barometer" for the world economy, directly influences the movement of the cycle and the change in the economic situation in other countries, influences the structure of international economic exchange. Changes in the American economy and the conditions of entry have a significant impact on the world market worldwide. The United States is the largest importer of mechanical products, accepting exports of automobiles and equipment, and purchasing virtually all types of equipment