The U.S. dollar is considered universal due to several reasons:
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Global Reserve Currency: The U.S. dollar serves as the world's primary reserve currency, which means it is held by central banks and governments around the world to conduct international trade and stabilize their own currencies.
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Economic Stability: The United States has a stable and robust economy, making the U.S. dollar a preferred choice for trade and investment.
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Liquidity: The U.S. dollar is one of the most widely accepted currencies in global markets, providing high liquidity and ease of transactions.
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Historical Factors: The Bretton Woods Agreement in 1944 established the U.S. dollar as the world's primary currency for international trade, solidifying its universal status.
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Influence of the United States: The political and economic influence of the United States on the global stage has contributed to the widespread acceptance and use of the U.S. dollar in international transactions.
