The US Dollar as the Global Currency Against Other Major Currencies During the Covid-19 Pandemic

Abstract

The dominance of the US Dollar in the international economy began with the Bretton Woods system at the end of World War II in 1945. The currencies from other major economic powers such as the Eurozone’s Euro, the Japanese Yen, and the Chinese Yuan could be the best contenders against the US Dollar supremacy in the 21st century. The most popular cryptocurrency – Bitcoin, also eyes the position as a contender for the global currency. The COVID-19 pandemic has disrupted the global economy in 2020. As a result, the reliability and popularity of the US Dollar have been put into another stress test. To measure the status of the US Dollar against other major currencies, the theory of international political economy paired with graph analysis will be used to determine the strength of the US Dollar against other major currencies. This paper also looks at the value of the US Dollar against the cryptocurrency Bitcoin. It is assumed that graph movement is influenced by the market sentiment after receiving news and information that could affect the market.