Today’s Chart of the Day was shared by Crews Bank & Trust Portfolio Manager Angie Parsons and comes from Wells Fargo Advisors. It shows that for all that is portrayed in the news, the US dollar remains the dominant reserve currency vs. the rest of the world. Why?According to the article, it is:
- Our depth, liquidity, transparency, and reliable governance of U.S. markets.
- Our reputable banking system, the rule of law, and transparency based on sound corporate governance.
- It being backed by a single, identifiable national authority, the Federal Government.
- Because it is fiat (vs. gold) which allows currency to be flexible and more stable in response to inflation or deflation.