The US dollar is mostly referred to as the currency that won’t fall by leading financial experts and well-renowned economists. The phrase came into existence not because the currency is invincible, but because it has the strength to bear the whiplashes of the monetary market and remain standing. Even if that means the world enters a recession, stocks plummet, jobs erode, and other currencies penetrate the market, the greenback still stands strong, and history has shown it powers through all uncertainties.
No other leading currencies, such as the euro, pound, yen, and yuan, can withstand the unforgiving whiplashes of the market. The US dollar has several scars from decades past, which show it has stood the test of time. Just when experts think the currency is headed south, the greenback rises as a phoenix.
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The US Dollar-Denominated Financial Market is Unmatched
The whole world, including the foes of America, has US dollar-denominated assets in their central bank reserves. The US Treasury market remains unmatched with heavy yet unending demand for sovereign bonds. It is simply because they are the safest and quickest to liquidate assets with high circulation. Any central bank, at any given point in time, is either buying or selling US dollar-denominated assets.
There’s no other currency that’s capable of absorbing global capital the way the US dollar does. Its debt is easy to buy and sell, and the same cannot be said for other leading local currencies. Trust in the USD is high and intact, despite emerging economies accelerating the de-dollarization initiative.
In fact, history has shown that the US dollar thrives and returns much stronger during periods of crisis. From financial downturns to recessions and wars, the USD has emerged much stronger during chaos. Even the de-dollarization agenda could strengthen the greenback as there’s no single alternative currency to match its current value.