 After the creation of the Federal Reserve Bank, the first

U.S. dollar was printed in the year 1914.Now Less than six
History of decades later; the dollar officially became the world’s
reserve currency post World War II.
World
currencies post  During World War II, the U.S. Was the main supplier to
the Allies and got paid in gold and U.S. Tossed up
World War II its position being the largest holder of gold.
  Post war, half of the world countries linked their currencies to
the dollar, which was linked to gold. This made the US
History of dollar's reserve status remained still today but the gold
standard ended.
World
currencies post  Today, US dollar denominations are used by more than 61%
of all foreign bank reserves, and nearly 40% of the world's
World War II debt is in dollars.
 The Birth of US Dollar

 In response to the instability of a currency system

based on banknotes issued by unreliability individual
History of banks, Federal Reserve Act of 1913 created the
Federal Reserve Bank.
World  Post war II, the U.S. economy had overtaken Britain’
position as the world’s largest, but was Britain still the
currencies post center of world commerce and industry revolution,
World War II with much of transactions was done in British
pounds.
 Most of the developed nations pegged their currencies
to gold to create stability in currency exchanges.
 The Rise of the U.S. Dollar

 When in 1914 World War I broke out, many

countries where be able to pay their military
History of expenses with paper money by abandoned the
gold standard, by which devalued their
World currencies.
currencies post  Britain, which had steadfastly held to the gold
standard to maintain its position as the world’s
World War II leading currency for three years into the war, lost
its position and found itself having to borrow
money for the first time from being lending.
 The Dollar and Bretton Woods

 In 1944 conference, Bretton wood agreement

was created, delegates from world war II 44
History of Allied countries met in Bretton Wood, New
World Hampshire, to come up with a structure to
manage foreign exchange that would give
currencies post countries easy pathway in trading the currency.
 It was decided that the world’s currencies will
World War II be linked to the U.S. dollar, which was linked to
gold.
  1944 the Bretton Woods agreement established a
new global monetary system. Which replaced
the gold standard with the U.S. and dollar became
a global currency.
History of  The agreement created the World Bank and (IMF)
World the International Monetary Fund; Organizations
would monitor the new system or structure and
currencies post was backed by USA.
World War II  The arrangement, established that the central
banks will maintain fixed exchange rates between
their dollar and other currencies. In turn, the
United States redeemed U.S. dollars for gold on
demand.
  Situations in which Countries had some degree
over the currency values became too weak or too
strong relative to the dollar. In order to regulate
money supply they could buy or sell their
History of currency.
World  Bretton Woods Agreement led the U.S dollar
crowned the world’s reserved currency officially
currencies post backed by the world’s largest gold reserves.

World War II  Countries started to accumulate reserves of U.S.

dollars instead of gold reserves.
 President Richard Nixon then president)
intervention led to delink the dollar from gold,
which led to the floating exchange rates that exist
today
 Present Day
 According to IMF (International Monetary fund) ,
current position of all foreign bank reserves are
denominated in U.S. dollars that is more than 61%.

History of  Also, approximately 40% of the world's debt is

denominated in US dollars many of the reserves are
World either in cash or U.S bonds such as U.S. Treasuries.
 Despite large deficit spending the reserve status is
currencies post based largely on the size and strength of the U.S.
World War II economy and the dominance of the U.S. financial
markets.
 So almost every country trades by the use US
Dollar