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The US dollar is the world’s reserve currency as it has been the fiat foreign exchange instrument of the world’s leading economy. The requirements for a reserve currency are political and economic stability.

The dollar is not the world’s oldest means of exchange, nor is it the asset that central banks and governments hold as a reserve asset classified as a foreign currency. Gold owns that distinction. For thousands of years, gold has been the means of exchange that symbolizes stability and a store of value. In 2022, countries worldwide validate gold’s role in the financial system as a reserve asset. Over the past years, central banks, monetary authorities, and governments have only increased their holdings.

Since the US dollar is the leader of the fiat currencies, a strong dollar typically weighs on gold, while a weaker dollar often supports the precious metal’s price. However,…

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