U.S. dollar makes up 64 percent of all known central bank foreign exchange reserves. That makes it the de facto global currency, even though it doesn't hold an official global title.

The relative strength of the U.S. economy supports the value of its currency. It's the reason the dollar is the most powerful currency. Around $580 billion in U.S. bills are used outside the country. That's 65 percent of all dollars. That includes 75 percent of $100 bills, 55 percent of $50 bills and 60 percent of $20 bills. Most of these bills are in the former Soviet Union countries and in Latin America.

https://www.thebalance.com/world-currency-3305931 

U.S. dollar makes up 64 percent of all known central bank foreign exchange reserves. That makes it the de facto global currency, even though it doesn't hold an official global title.

The relative strength of the U.S. economy supports the value of its currency. It's the reason the dollar is the most powerful currency. Around $580 billion in U.S. bills are used outside the country. That's 65 percent of all dollars. That includes 75 percent of $100 bills, 55 percent of $50 bills and 60 percent of $20 bills. Most of these bills are in the former Soviet Union countries and in Latin America.

https://www.thebalance.com/world-currency-3305931 

Because the US economy is the largest in the world and keeps growing through innovations and efficiency. The USA is the most dominant military power to support its business interests. The UK is mired in trying to exit the EU and none of the other currencies can match the reliability of the dollar.

Thanks Dr Mahesh Kumar and Dr Amir W. Al-Khafaji for your contributions.

Dear Segun Michael Abegunde

Please also have a look at these useful links.

https://www.quora.com/Why-is-USD-a-global-currency

https://www.quora.com/Why-dollar-is-the-global-currency

https://www.quora.com/Why-is-the-US-dollar-considered-as-the-international-currency-globally-vs-the-yen-or-euro-or-pound

Thanks!

Thanks Dr Arvind Singh for your contribution. Very useful.

Capturing some land of some country by applying military force is almost an idiotic idea in today's world.

Capturing the business of other countries can be considered as today's version of colonisation or aggression.

As USA is trying and get success to a large extent to control maximum portion of global business, their currency is valued highest.

Thanks Dr Shibabrata Pattanayak for your contribution. You made a good point.

Hii Segun Michael Abegunde

Dollar is used in most of trade markets & US supports their economic status very well.

I agree with Dr. Shibabrata Pattanayak Dr. Mahesh Kumar Dr. Amir W. Al-Khafaji 's answers.

It's because of the long historical influence of the American economy on global trade.

The conventional currency is adopted and even promoted by the competitors. The roots of US economy are spreading across the latitudes in the world and keep on growing due to efficient strategies and sustainable development policies.

Just like English continues to be the universal global language, dollar continues to be the international currency. Have you heard the expression, "might is right?" Whoever has the biggest infleunce economically, politically and miltarily holds the upper hand in making decisions for the world, whether people in other countries like it or not. That is the reality that we have to live with.

The increasing dependency on American economy can be one of the reasons.

Thanks Dr Prabhjot Kaur, Dr Dickson Adom, Dr Jahangir Khan, Dr Srini Vasan and Dr Ataul Karim Patwary for your contributions.

Top ranking country and sconomy.

Dollar currency nation is global leader therefore dollar is accepted globally

Thanks Dr Emad Kamil Hussein and Dr Pankaj Tomar for your contributions.

That is because USA is the leading military and financial force over the whole world. For sure the use of $ to control the international finance is the key of global colonization and the easy way to control the world.

Thanks Dr Amjad Hazim Al- Naemi and respeted Dr Arben J Salihu

Thanks for this question. I have learnt a lot from Dr Mahesh Kumar

Thanks Dr Felix Nwafor for your contribution

US Dollar seems to be more stable currency, backed by economically advanced country US. Most of the trade is in US dollar.

Dear Srini Vasan,

your phrase "Just like English continues to be the universal global language, dollar continues to be the international currency. Have you heard the expression, "might is right?" Whoever has the biggest infleunce economically, politically and miltarily holds the upper hand in making decisions for the world, whether people in other countries like it or not. That is the reality that we have to live with"

reminded me of an anecdote: The hare gathered all the beasts and said that from now on he is the only king of all animals and everyone must obey him. All the animals out of fear endured this hare and obeyed any decision of the hare. This went on for a long time. One day a lion came to the forest and approached the hare. The hare began to shout at the lion and in response the lion hit the hare, after which the hare died. All the beasts ran to the lion and began to scold him, because he killed the king of all the beasts. However, the lion said with disappointment: "I did not know that the hare is the king of all animals, otherwise I would not even come close".

In short, everything depends on our attitude to the dollar and to the US in particular. If someone like a hare said that "the dollar is the king on this planet", then there will find a lion who will simply kill this dollar without any consequences. However, this can happen. Already many countries are buying up gold and trading for national currencies. Because the dollar is not provided for anything except our trust to the dollar. Until now, this trust was kept on fear.

Thanks Dr Ashok Pundir and Dr Gennady Fedulov for your contributions.

It is the most stable currency in the world. It is also a symbol of America's dominance and hegemony.

Thanks Mr Ademolawa Michael Adedipe for your contribution,

You are welcome

I like Arben J Salihu's answer. But as the economy of China or EU is growing will the USD keep its position in future. Also in the age of inward looking policy of USA and trade restriction shall other currencies will increase their share?