As the world economy begins to open, it’s time for businesses to have a conversation about what we all need to do to rebuild. Repairing the economic damage will not be simple, and it’ll likely take a few years. Still, there’s a silver lining beginning to emerge for US companies – increasing worldwide reliance on the US dollar to prevent other countries (and our own) from plunging into a period of recession.
So, how will the new world look?
How the US Dollar Supports the Rest of The World
Historically, the US dollar has been the currency most global businesses turn to during times of crisis. As the rest of the world envies the stability of the US dollar, so too will they seek to base their currencies upon it. During the initial outbreak of COVID-19, the US dollar index value rose to near-record highs and maintained value – not because of our productivity levels and economic output – because of our country’s reputation as the world’s top superpower.
Why Other Countries Are Susceptible to Our Dollar Value
A strong dollar is even vital to China, a country nearly akin to America in terms of economic statuses and response to the virus. The entirety of Europe couldn’t pit their currency, the euro, against the economic destabilization derived from numerous lockdowns and an overwhelmed healthcare system. The United States, on the other hand, has no problem maintaining and even increasing the value of its currency in the face of a crisis. Global economic crisis management is practically the United States’ job. As a result, the US dollar currently maintains security and stability over many global currencies, including China’s yuan, Japan’s yen, and the European euro (it’s in the name!).
International Businesses in Search of the US Dollar
Right now, small to medium-sized businesses across the world are all undergoing the same trials and tribulations. To stay afloat during economic uncertainty, companies are relentlessly hunting for significant capital reserves now more than ever. The enhanced risks of global businesses going under due to either a shortage of customers, a shortage of product, or the possible sickness/death of employees have propelled many business owners to flock in search of the US dollar. Therefore, putting stock into international money transfers might be essential for the continued survival of the global economy. As any currency is based on the US Dollar, it becomes more stable.
Worldesk To The Rescue
Worldesk is an innovative currency management and automation system built to optimize your international payables and receivables process. The platform is built on an automated alert system to reduce the impact of the currency market on your business. What’s more is that Worldesk’s program integrates itself with a plethora of connected services, including Quickbooks and Salesforce, as well as online marketplaces like eBay and Amazon. If you work with companies overseas, using Worldesk’s innovative platform ensures a safe, stable, and secure transaction. Contact us at 212-719-7551 to discuss your needs, and utilize our system.