US Dollar the king of the currencies and the US uses this privilege to affect the stability of other countries. After the world war II European currency were collapsed and the dollar had the qualities which made it just right for the new global monetary system.
Issuing the currency that was most used by the world gave the US what the French minister of finance called “exorbitant privilege” this was simply the idea that too much trust was being put in the currency and America got to buy the world’s products using its own currency but everyone else has to use its currency.
By 1966, foreign banks held about $14 billion worth of US Dollars but the United Stated had only 13.2 Billion dollars in actual gold reserves and most of that had to cover domestic holdings and this cause concern. In 1965 the French president challenged the US Dollar position in the international economy.