THE IMPORTANCE OF SAVING IN DOLLARS – PART 2
Saving in dollars is practically becoming an active part of the economy of the United States. At present, the value of a currency in a country depends exclusively on how the economy of that country is active in the international market since almost all the nations of the world have commercial relations in which they depend on for their sustainability.
There are countries that need gold. Others need petroleum, while many others require agricultural commodities such as coffee and rice. Because of that, the stock exchanges happening every day, in that world where the stockbrokers spend their time studying numbers on a screen, are the thing that defines which country have the solvency to be a leader in the market and get better sales and/or purchases than others.
Leadership of the United States of America
The United States is one of the most advanced nations in the world. Its economic potential has allowed it to expand its business to an international level, which is the reason why the United States is the father of many of the multinational corporations that operate in other countries worldwide.
The commercial relations the United States has with Latin America, Europe, Asia and the rest of the world are really stable, so trade always remains active.
All of this is what allows the US dollar to have a strong presence in the market and that many other markets in the world must adjust their purchase rates to what is proposed by the rhythm of the work, the production and the economic growth that represents this North American country.
The dollar then is an indirect reflection of how an economy makes its national currency equally robust and desirable abroad by positioning itself in a particular market sector.
The Prejudices Revolving Around the Dollar
The prejudices that exist around the dollar as an exchange currency are as follows:
- It is said to be a currency weak to change.
- Inflation in the United States may affect its value.
- The United States is a country with war policies that can lead to bankruptcy at any time.
- The dollar is a type of currency that costs more to buy than to sell.
- It is necessary to have large amounts of savings in dollars to see profits well reflected.
- There are stronger currencies with which to save, such as the Euro or the Pound Sterling.
- If the United States ends commercial relations with one country, then the dollar value will crumble for that country.
The Truth About the Misconceptions
Many of these ideas do not fail to have a good part of the reason. Yes, inflation in the United States may affect the value of the dollar. However, such internal inflation will have a proportional effect in countries with which the United States has established commercial relations. Because of that, inflation cannot be blamed as the only cause of the loss of value.
However, the key that the United States has to cope with its inflation is in the Federal Reserve System. That is its Central Bank, which one is responsible for helping the country’s economy at the time when the trade relations aren’t stable, and the value of the dollar starts to deteriorate.
This single aspect, the fact that the dollar currency is protected by one of the central banks with the most money in the world, makes the stability of the dollar profitable at all times.
If you want to continue unmasking the prejudices that exist regarding saving in dollars, continue reading the following article.