1. USD has long been regarded as a safe haven currency, which is related to its status as the world's number one reserve currency. /kloc-at the end of 0/9, the American economy developed rapidly and became one of the most powerful countries in the world, and the status of the US dollar was promoted for the first time. Historically, when other currencies fall, the dollar will be considered as a currency that can maintain purchasing power and stability.
2. With the establishment of the Bretton Woods system during World War II, many countries were forced to buy US dollars as foreign exchange reserves, and used US dollars as the pricing currency of commodities in foreign trade, and even used US dollars at home, so the value of US dollars was improved. Therefore, it can be said that the dollar monopolizes the throne of the world currency by bundling commodity prices. During the global economic recession, the demand for commodities will decrease, and the prices of commodities will also drop sharply. At this time, the dollar will soar. During the financial crisis, capital inflows supported the financial market in the United States, and there was a glimmer of hope for the United States and every dark cloud.
3. So once the risk comes, investors will use these two tools for safe investment transfer when they perceive economic turmoil. The market tends to convert money or assets into dollars, and at the same time, because of the free flow of dollars, dollars have become the most convenient currency to avoid risks. In the 2008 financial crisis, the US dollar was sought after by investors as the safest asset in the world. In just six months after the crisis began, the proportion of the US dollar in a basket of currencies rose to 30%.
Brief introduction of safe-haven currency:
1. A safe-haven currency generally refers to a currency that is not easily affected by political, war, market fluctuations and other factors and is not easy to depreciate. The factors that make a currency a safe haven include the long-term stable purchasing power of the currency, the political and financial situation and prospects of the country to which the currency belongs, and the relevant policies of the local central bank.
2. The safe-haven currency has become the object of "looting" in the financial crisis, which has caused a large influx of funds from safe-haven currency countries in the crisis, thus temporarily gaining a breathing space. But everything has its two sides, and "safe haven currency" will also have side effects after the crisis. The appreciation of these safe-haven currencies in the crisis made them lose some of their export competitiveness. In fact, the crisis itself should be to adjust the economic structure through devaluation. At the same time, the effectiveness of monetary policy in safe-haven countries has also been "disturbed".