BETA
Will another currency ever replace the dollar?
Chapter 1
The secret birth of the Fed
Chapter 2
The magic lever of interest rates
Chapter 3
Printing money and fighting inflation
Chapter 4
The global ripple effect of the dollar
Ch 4 · The global ripple effect of the dollar
sloane Tip the financial dominoes to discover how the Federal Reserve quietly runs your wallet.
sloane Dollar's Global Economic Reach
From Washington D.C., The Fed's rates move, you see, A global currency, Impacting economies!
sloane Major global commodities like oil, gold, and agricultural products are priced and traded in U.S. dollars.
Fun Fact
Global dollar dominance: Nearly 60 percent of all known central bank foreign currency reserves in the world are held in U.S. dollars.
sloane When the Fed raises interest rates, it often triggers capital flight from developing nations back to the U.S.
Glossary
reserve currency (noun)
A foreign currency held by central banks to facilitate international trade and back liabilities. The 1944 Bretton Woods Agreement officially established the United States dollar as the world's primary reserve currency.
A foreign currency held by central banks to facilitate international trade and back liabilities. The 1944 Bretton Woods Agreement officially established the United States dollar as the world's primary reserve currency.
Quiz
What is the term for investors moving money out of emerging markets to seek safer U.S. yields?
Quiz
How are major global commodities like crude oil and gold traditionally priced on the international market?
Quiz
What often happens to developing nations' currencies when the Fed raises interest rates?
Quiz
What percentage of global central bank foreign exchange reserves are held in U.S. dollars?