Because there are 1) willing exporters of US dollars USD (the US federal government USG ultimately, and US citizens in the final analysis); and 2) willing users of USD - us non-US-ian people around the world.
When I sell stuff to someone in the UK, then pounds are fine as means of exchange. When I sell the same someone around the world, then the transaction not being domestic, the cash part that is 1/2 of it (or 1/4 if you want to look at it in a way of transaction = quartet of {stuff,cash,buyer,seller}) and it can be in any currency of any country. It helps if it is the country of the buyer or the seller, but in general it is neither.
I prefer US Dollar to Zongoan Vonga, b/c:
1) USG typically does not devalue their USD much, I don't have to rush to exchange the USD for something else. Or if you want - most others devalue theirs more.
2) USG has not deleted and re-issued their USD even once so far afaik. Other countries do it more often.
3) Everyone else uses USD already. It's easier if it's one currency sufficing for all trade.
4) Often I don't produce oil, and oil is easiest to pay by with USD. Not impossible with others, just more difficult.
5) US banks allow me to hold USD in accounts outside of US. They don't ban me to take the USD in- or out- of US.
6) With USD in hand I can buy lots of stuff US produces, plus I can buy US assets - property, financial assets etc. US does not discriminate against me johnny-the-foreigner much, they are mostly relaxed in that respect. Other countries have all manner of rules that amount to: they'll basically steal their currency off you, or make it worthless to you by making you unable to claim the goods & services that are nominally sold in that currency.
Before people pipe in how US is terrible in this and that - above is all *relative* to all other options all other currencies available. This is from to top of my head, I'm sure I made some error and there is more.
> USG has not deleted and re-issued their USD even once so far afaik. Other countries do it more often.
Interesting side note: they did it once, just after the ratification of the US Constitution. The Revolutionary War was funded in some sense by devaluing the Continental Currency of the time, denominated in "Dollars". You could argue that the "US Dollar" only came to being with the coinage act of 1792, but as a Brazilian I'd say "Potay-to, Potah-to"
FYI better not to use silly terms like 'US-ian' as they are confusing and cause problems while solving none. Just stick to the standard 'American', context makes it clear what you mean :)
Haha :-) - fine, hope no offence taken. :-) (none was intended) It came with the flow, flow was - US-... -Government, -Citizens, -Dollar, and then when it came to "people of the world that are not US citizens" (but are users of US dollars) programatically is seems to my compute mind, it came as "non-US-ians" fits that set of people well, and plus tallies with the "US-this-and-that" of the wordings prior. I'm originally from the Balkans, and so cognisant and got some experience with "verbal mines" and nuances in all manner of names and naming-s. I intuit what you are saying. :-) thanks
When I sell stuff to someone in the UK, then pounds are fine as means of exchange. When I sell the same someone around the world, then the transaction not being domestic, the cash part that is 1/2 of it (or 1/4 if you want to look at it in a way of transaction = quartet of {stuff,cash,buyer,seller}) and it can be in any currency of any country. It helps if it is the country of the buyer or the seller, but in general it is neither.
I prefer US Dollar to Zongoan Vonga, b/c:
1) USG typically does not devalue their USD much, I don't have to rush to exchange the USD for something else. Or if you want - most others devalue theirs more.
2) USG has not deleted and re-issued their USD even once so far afaik. Other countries do it more often.
3) Everyone else uses USD already. It's easier if it's one currency sufficing for all trade.
4) Often I don't produce oil, and oil is easiest to pay by with USD. Not impossible with others, just more difficult.
5) US banks allow me to hold USD in accounts outside of US. They don't ban me to take the USD in- or out- of US.
6) With USD in hand I can buy lots of stuff US produces, plus I can buy US assets - property, financial assets etc. US does not discriminate against me johnny-the-foreigner much, they are mostly relaxed in that respect. Other countries have all manner of rules that amount to: they'll basically steal their currency off you, or make it worthless to you by making you unable to claim the goods & services that are nominally sold in that currency.
Before people pipe in how US is terrible in this and that - above is all *relative* to all other options all other currencies available. This is from to top of my head, I'm sure I made some error and there is more.