This essay wants to present some of the dilemmas of what could possible happen with the dollar. This is a topic that comes up especially in the business arena because it is related with risk and affects the operations and profitability in the short and in the long run. However factors such us stability, acceptability and anonymity are the principal factors why the U.S. dollar was, is, and will be the world's currency of choice; however the last developments in the global markets could indicate that the dollar or any other currency cannot be "currency of choice" forever specially in a globalized Market.
Considerations
The principal requirement to determine if a Currency Money is acceptable is the implicit trust in it. After many market imperfections during the recent years, the U.S. dollar shows that even though it is the preferred currency it is not aside of problems. For example, $100 dollar bills have a reputation of being a preferred target for counterfeiting. As a result, they also tend to have a lot of difficulties to be used or traded around the world. Long time ago when high denomination bills circulated it was a perfect setting, but this situation changed because money launderers loved large bills. This also represented a huge preference to use the U.S. dollar: anonymity because the U.S. dollar is accepted around the world and it is not necessarily tracked in foreign economies.
When companies develop and realize businesses around the world today, it Is common to find that the U.S. dollar (USD), has become the main exchange currency in a country's economy; even in a country where it is not the official currency. While official dollarization may be well-documented like countries such as Panama and Peru, the murky world of...
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...ot, nonetheless, prevent U.S. interest rates from going up in a global market.
In addition, stability is one of the most important factors that explain why a number of countries have implemented the U.S. dollar as official currency.
The U.S. dollar has never been devalued, and its notes have never been overthrow. For countries with common bank collapses, devaluation and inflation, the stability of the U.S. dollar conveys with it a confident amount of peace of mind. Business is easier to perform when a stable currency is used.
Works Cited
http://www.forbes.com/sites/billconerly/2013/10/25/future-of-the-dollar-as-world-reserve-currency/ http://econlog.econlib.org/archives/2013/10/the_relative_un.html http://www.investopedia.com/articles/07/unofficial_dollarization.asp
http://www.nbcnews.com/id/14959939/ns/business-answer_desk/t/us-dollar-headed-fall/#.Uy2msqhdX0c
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