A historical economic report examines the journey of the US dollar to its absolute top spot among world currencies. The roots of this hegemony go back to after World War II, when it was strengthened by the status of the American economy and the “petrodollar” system that linked global oil trade to the American currency, which gave Washington broad financial and geopolitical influence that enabled it to control capital flows and impose sanctions through the international banking system.
Despite successive global crises, the dollar still accounts for the largest share of international reserves and trade exchange operations. However, the report highlights a strategic shift among many international powers that have begun to seek alternatives to reduce dependence on the dollar, in anticipation of the currency being used as a “weapon” in political disputes. The report concludes that the future of this financial “throne” faces serious questions today as the world moves towards a multipolar economic system.
