A country’s currency can provide a powerful tool in dictating the stabilization of the global order. As such, the US dollar in addition to its use in the United States, is the official currency of British Virgin Islands, Caribbean Netherlands, East Timor, Ecuador, El Salvador, Marshall Islands, Federated States of Micronesia, Palau, Panama, and Turks and Caicos Islands. In addition, the US dollar is used as an official parallel currency in Cambodia, Lebanon, Liberia, and Zimbabwe. Finally, numerous countries and their people hold dollar as a reserve to hedge themselves against rampant inflation and uncertainty Federal Reserve Board.
Second, a currency such as Euro (€) reflects the collective will of member states and their underlying collective economic power and problems in 17 countries. Euro is the official currency of Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, The Netherlands, Austria, Portugal, Slovenia, Slovakia, and Finland Euro Area.
Although, officially, US dollar and Euro are adopted by approximately 10% of the global population, over 50% of the global population use them as an alternative to hedge themselves against inflation in countries where these currencies are not the official currency keeping their value high.
Therefore, globalization can be influenced by the extent of a currency’s influence as much as political and economic pressures may be used in the pursuit of securing natural resources to fuel economies.
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