In 1620, Mayflower moved from Rutherth in East London to the New World and carried religious dissidents looking for a new life abroad ,They should initially settle for gold coins and an English budget, but they understand their money, The green card's acquisition of that position for years without a real competitor made it difficult to have a strong alternative, even though the US dollar reserves fell to a four-year low in the fourth quarter of last year.
The idea of a dollar
After the exchange between the settlers themselves became very important, settlers began to use other goods in the barter process. In the northern colonies they used corn and cod, for example, and in many southern colonies they preferred tobacco. Many of these goods have been declared legal, although some have not been successful as currency, The price of the goods was different from the payment method using hard currency, gold or silver or money of some kind, instead of using a form of legal currencies such as shells, because hard currency was the most acceptable and therefore the most useful.
Is it a competitor to the dollar
In March 2009, China and Russia called for a new global currency that would become the currency of the world's reserve currency, independent and non-volatile, as well as removing the shortcomings resulting from the use of national currencies linked to credit, China has already called on the International Monetary Fund (IMF) to do so as a result of concerns that the trillions it holds in US currency will become less valuable as a result of the US spending deficit And the issuance of US Treasury bonds to support debt, The dependence on the dollar as the main reserve currency in the world is not due to the position of the US economy in the global economy, because in this perspective the US currency will lose in competition
The First World Currency
The reason for this is that since the Second World War, the US share of global GDP has fallen from about 30% to 18%, surpassing China's share by only 2%, and the share of emerging markets in global GDP increased from 40% to 60%, Despite all that, the global financial policy has not changed in accordance with those developments and the dollar has maintained its status, and the password is Bretton Woods.
The Bretton Woods is a historic agreement on cash exchange rate management, and the name of the agreement was attributed to the place where it was held in 1944, whereby the US dollar became the currency of the world's cash reserve and linked to the price of gold metal, Under the agreement, central banks will maintain fixed exchange rates between their currencies and the dollar. In return, the United States will replace the US dollar with gold on demand, Until the 1970s, about two-thirds of the world's GDP was based on the dollar, and the rest was largely divided between the British pound and the Soviet ruble.