There are many industries and spheres where the USA takes the leading position. A big number of both progressive and controversial inventions in the modern world has been made by the United States. The same comes to the economic sphere. Many may wonder, but the first paper money was issued in the US. Since that time, the currency has become not just a monetary means of one state but a symbol of success and prosperity for the whole world. USD was issued by various banks. In other words, money release was chaotic and not monopolized by the central government.
The Situation of Today
Nowadays, the US dollars are the most common currency in the world. It would seem that it is just ordinary green pieces of paper. However, in fact, it isn’t so. Apart from being the most widespread currency in the world, USD is also one of the most stable and expensive money all over the globe.
In his book Biography of the Dollar, a famous American journalist Craig Karmin describes the bright past, the stormy present, and the vague future of the US monetary unit. Karmin is of the opinion that, despite all the problems, the US dollar will not lose its “title” of the most popular currency in the world. There is a simple reason for that – there is nothing to replace USD yet.
If to believe Karmin, the US dollar has gained the worldwide popularity not only because of the increased power of the US economy. The cash was in demand because all people believed in the words and deeds of the American government and the very idea of the USA. As a result, USD has become one of the most famous and respected symbols of our time.
What’s the Future of USD?
The famous journalist argues that the fate of USD is affected by 4 major factors. First of all, the reluctance of the US authorities to balance the country’s budget will impact the state of the country currency. Secondly, Asian and the Middle East nations are now less willing to subsidize the dollar, which will also influence the situation. Thirdly, considering the fact that the position of Euro strengthened, it began to act as an alternative currency and has weakened the US dollar. What is more important, USD is negatively affected by the traditions of Americans, specifically, their commitment to the “borrow and buy” principle.
Considering the situation in the global economy, we strongly advise you to issue a travel credit card in USD. In such a way, you will not have to waste your money on cash exchange since almost every fourth country accepts US dollars with no extra charges and commissions. However, in case you are going to visit the European country, it is recommended to have a Euro card at hand.