By Admin 
US Dollar: Whenever people talk about the strength of a currency, age is often considered an advantage. By this logic, the US dollar should never have been on top. In fact, many currencies are much older than the dollar, but despite this the US dollar dominates global trade, reserves and finance. Let us know what is the reason behind this.
Old currency from US dollar
The US dollar officially came into existence between 1785 and 1792. Long before that, many places had already developed a stable monetary system. The British pound, first used in Anglo-Saxon England in 775 AD, is the world’s oldest currency still in use. It is about 1000 years older than the dollar. With this, the Indian rupee was formally standardized in the 16th century during the reign of Sher Shah Suri. But its roots extend back to ancient silver coins of the sixth century BC.
Similarly, the Serbian dinar, introduced in 1214, and the Russian ruble, which dates back to the 13th century, have survived political changes over the centuries. Even the Swiss franc, which was officially adopted nationwide in 1850, existed in different forms in Swiss cantons long before the US dollar became globally relevant.
If these currencies are old then why haven’t they become dominant
Age alone does not guarantee dominance. Most of these currencies were linked to regional empires or local trade systems. Their influence waxed and waned with the power of the states that issued them. When those empires weakened, their currencies lost global appeal.
Turning Point of Bretton Woods
The biggest moment for the US dollar came with the Britain Woods Agreement in 1944. 44 countries agreed on a global financial system. In this, the major currency was linked to the US dollar and the dollar itself was backed by gold at a fixed rate. It immediately became the anchor of the USD global monetary system.
After the Second World War, large parts of Europe and Asia were destroyed. Whereas the United States emerged as economically powerful, industrially advanced and economically stable. At that time America had about two-thirds of the world’s gold reserves. This was the only reason why the dollar was considered the safest source of value.
advantage of petrodollar
In the 1970s, America made a strategic deal with Saudi Arabia and other OPEC countries. According to this deal, oil will be traded only in US dollars. This petrodollar system forced every oil importing country to hold dollars. Due to which the global demand for US dollars increased forever.
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