History·8 April 2026·5 min read
The dollar — how it became the world's currency
More than half of world trade is done in dollars. How a single currency became so powerful.
After World War II, through the Bretton Woods agreement (1944), the US dollar became the world's reference currency, then tied to gold. Other currencies were pegged to the dollar.
The power of a reserve currency
Even today, states keep their reserves in dollars, and oil and many raw materials are sold in dollars. This gives the US enormous economic power — and shows how important the role of global "trusted currency" is.
Having the currency the whole world reckons in is the greatest form of financial power.
