Dollar Rules The World

From our previous lesson, we saw how often the U.S. dollar is traded in the spot forexmarket. It takes wholly about 84.9% of all reported transactions.
The USD is one half of every major currency pair, and the majors comprise 75% of all trades.
It is therefore very important to pay attention to the U.S. dollar.
The US Dollar rules the world!

According to the IMF, the U.S. Dollar is made of about 62% of the world's official forex reserves. Because almost every investor, business, and central bank, pay attention to the United States Dollar.
Reasons why the U.S. dollar plays a central role in the FX market:

• The United States of America economy is the largest economy in the world.
• The U.S. dollar is the reserve currency of the world.
• It has the largest and most liquid financial markets in the world.
• The U.S. has stable political system.
• They are world's military superpower.
• The U.S. dollar is the medium of exchange for many cross-border transactions.

Let’s take for example oil is priced in U.S. dollars. So if France wants to buy oil from Nigeria, it can only be bought with U.S. dollar.

If France doesn't have any dollars, it has to sell its francs first and buy U.S. dollars.

Hello Mr Reader, I hope it’s entering?