Essay: Importance of Stable Currency

Importance of Stable Currency Sample Essay

A stable currency is usually of great importance when it comes to trade between two or more countries. This is due to the fact that the currency can be relied upon when making predictions for the futures market. In case this is not so then there can result in great losses for business people in the countries involved in the transactions. The United States is the largest economy in the world. As thus the currency of the United States is of critical importance in international commerce. When the currency of the United States depreciates, then this results in great losses.

These losses are not only for its economy but also for the economies and businesses of other international firms and countries that rely on the U.S. dollar. The Federal Reserve or the Fed is the institution within the United States that plays the role of a central bank in many other states across the globe.

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