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It is valuable as a store of value though. Either pure like gold, or tied to something more like assets. USD is a bit strange because it is both a store of valu
by dlwdlw 9y ago
It is valuable as a store of value though. Either pure like gold, or tied to something more like assets. USD is a bit strange because it is both a store of value used by many countries as well as a currency. there is an implicit peg to oil though. So the the price of oil is something fairly important to the US.
- gamblor956 9y agoThe USD is a currency. Due to its stability, it is also used as a store of value by foreign countries. Oil is pegged to the dollar. The price of oil is relevant because of its effects on prices, not the dollar.
- dragonwriter 9y ago> Oil is pegged to the dollar. Oil producers may target a dollar price and trade in dollars, but oil is not pegged (that is: trading with a fixed exchange rate) to the dollar.