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  • Essay / Dollar Exchange Rate Essay - 670

    Every day in the United States, approximately 38 million banknotes of various denominations with a total amount of approximately $541 million are issued (made on American money). Dollars have profound consequences for both the United States and other countries. The increase in its price relatively reduces the volume of export earnings in dollars, which very often leads to a more considerable change in the exchange rate and a drop in world prices, particularly for raw materials. On the contrary, the decline in the value of the dollar serves as a powerful tool contributing to the growth of American exports and the distancing of competitors from the United States in foreign markets. At the same time, imports to the United States are restricted due to the effect of rising prices. So, for the United States, changes in the dollar exchange rate anyway bring benefits and advantages. The reduction of the dominant positions of the United States in the world economy is favored 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 are made up of 61% of dollars, almost 2/3 of world trade calculations are made in dollars; the dollar serves as a measure of the value of many important goods (for example: oil) on the world market; In dollars, 3/4 of international bank credits are carried out (Alexandre Popov). Changes in the dollar exchange rate have profound consequences for both the United States and other countries. The increase in its price relatively reduces the volume of export earnings in dollars, which often leads to a more considerable change in the exchange rate and a drop in world prices, particularly for raw materials. On the contrary, the decline in the rate of the dollar serves as a powerful tool promoting the growth of American exports and pushing...... middle of paper ......n the global movement of monetary resources at the heart of internationalization of the monetary policy of the United States, the international role of the dollar, which remains the main reserve and settlement currency in the global monetary system, lies in the international role of the US dollar. The US dollar is used in most international transactions, and therefore what happens to the US economy will be affected by the international financial situation. resources.The United States 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. Developments in the American economy and access conditions have an essential impact on the world of the American market. The United States is the largest importer of mechanical products, accepts the export of cars and equipment, and makes purchases of virtually all types of equipment.