The dollar is indeed the currency in circulation in the world, so does the United States need foreign exchange reserves? Before answering this question, we must first understand what foreign exchange reserves are. Foreign exchange reserves actually refer to the foreign exchange part of the international reserve assets held by a country. Generally speaking, foreign exchange reserves generally include convertible currencies widely used in the world. Its specific form is that overseas short-term deposits or other means of payment that can be cashed overseas, such as foreign securities, checks, promissory notes, foreign currency drafts of foreign banks, etc., can all be called foreign exchange reserves.

It is worth noting that foreign exchange reserves are mainly used to pay off the balance of payments deficit, intervene in the foreign exchange market and maintain the local currency exchange rate. From this perspective, the United States naturally needs foreign exchange reserves for the simple reason that it also needs to trade with other countries. In this process, the United States also needs to pay off its balance of payments like other countries. Although the US dollar is the world currency, there is more than one currency in the world, such as RMB, Japanese yen, British pound and Euro. Although the US dollar accounts for about 60% of the international trade in goods,

Judging from the current situation, sdr includes five China currencies: US dollar, British pound, euro, Japanese yen and RMB. In addition to these five international currencies, other currencies such as Australian dollar and Hong Kong dollar also have an influence. Therefore, all major trading countries will reserve some of these currencies. It is precisely because the dollar is the currency in circulation in the world that the reserve of the dollar is particularly important. In the past, when the US dollar fluctuated, people usually heard a familiar name, namely the Federal Reserve, but they also saw it? Federal Reserve? The adjustment of the world currency dollar to the fluctuation index and risk coefficient.

The dollar reserve is actually a reserve of powerful material wealth. Although the dollar is the world currency, it does not mean that all the wealth generated by the world currency dollar belongs to the United States. It can only be said that the reserve of the economic aggregate represented by the US dollar is of great significance to the anti-risk, anti-crisis, adjustability and sustainability of the world economy.

As the currency with the largest transaction volume in the proportion of world trade, the dollar is the sovereign currency of the United States. Therefore, the United States naturally does not have to worry too much about the dollar reserves. After all, the United States can issue dollars independently, but it still needs to reserve some foreign exchange reserves such as currencies or bonds of other countries. For example, the United States needs to reserve some euros, pounds, RMB, Japanese yen and other currencies, because the United States still has to trade with these countries. In this process, the United States also needs to pay the balance of payments deficit to these countries. Therefore, even if the dollar is one of the most important currencies in circulation in the world, the United States still needs a lot of foreign exchange reserves.