Explained | Dollar domination: Why global markets depend on the US currency

A Fed research paper estimated in 2017 that as much as 70% of all dollars are held outside the United States and 60% of all $100 bills circulated overseas.

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Markets got a reminder of the greenback’s hegemony in September when a squeeze in overnight dollar funding rates in New York sent shivers across the world.

From the dominant reserve currency for central banks to the main conduit for global trade and borrowing, U.S. dollars are the lifeblood for banks and markets around the world.