Care to provide any examples? If the US were to fall into disarray, the demand for USD would fall. People are free to choose GBP, Euro, Yen, Yuan, but apparently a lot of people choose USD.
That ended in 1971, I think that’s plenty of time to move past it. The bigger factors are US military supremacy and the US producing extremely valuable economic goods and general stability in the US judicial and political system. All of these leads to trusting the USD more than other currencies.
We can continue on to the petrodollar system (hence we I wrote et al.).
There are many reasons why the USD dollars is currently the de-facto reserve currency of the world. But it is much more nuanced than the merits of the dollar as a reserve currency that you initially indicated (That it isn't given and that people like to use it).
Investopedia agrees with what I wrote. People use USD because they want to. No one is stopping petroleum sellers from accepting other currencies, but the petroleum sellers believe USD will buy them what they want (more than other currencies).
> Petrodollars are crude oil export revenues denominated in U.S. dollars (USD). The term became widely used in the mid-1970s when soaring oil prices generated large trade and account surpluses for oil-exporting countries.
>Then, as now, oil sales and the resulting current account surpluses were denominated in dollars because the U.S. dollar was—and remains—by far the most widely used currency.
>The U.S. dollar's global popularity doesn't depend on the goodwill of oil exporters. It's based on the U.S.'s status as the world's largest economy and goods importer, with deep, liquid capital markets backed by the rule of law and military power.
And then again, historical events usually drive current status quo.
My initial comment was a recommendation on understanding the current state of the USD as the reserve currency given historical events.
There is a good chance that these things will chance.
But the history take time to unfold. And changing the worlds reserve currency does not happen over night - especially not 10-20 years ago when cash transactions were much more predominant.
But let's continue this talk in 10-20 years and see if the USD is still the reserve currency. And if it is, if we can attribute that to some obscene political moves, like adding 100% tarifs to economies trying to exercise their free choice of currency.
