Economic Powerhouse:
Fact: The US economy is $21 trillion in GDP (nominal, 2024 est.), roughly 24% of global GDP, larger than China ($17 trillion) or the EU.
Why: The US has a diverse, innovative economy (tech, finance, energy) with deep capital markets. This generates wealth and confidence in the dollar’s backing.
Impact: Investors and businesses globally see the USD as a safe bet for long-term value.
Petrodollar System:
Fact: Most oil trades are priced in USD, a legacy of 1970s OPEC agreements.
Why: This forces countries to hold USD for energy imports, reinforcing demand. Even non-oil commodities (e.g., gold, metals) are often USD-denominated.
Impact: Global trade reliance on USD keeps it central to commerce.