USD is the world's reserve currency which accounts for 60% of Central bank foreign currency reserves according to Nutmeg. 2022 was an amazing year for the the USD as it reached record highs against other major currencies.
20 year high against Euro
30 year high against Yen
40 year high against Pound/ (Almost achieved parity)
US Companies which had majority of their earnings linked to international sales took a hit on their earning while companies which would be having mainly domestic sales in the US benefitted from the higher USD.
Although the USD hold this position as of now, with Saudi starting to accept other currencies for its oil sales the tide could start turning for the reserve currency. This could lead to the break down of the Petrodollars system which is currently being used. Which would be a major blow to the currency especially with the uncertainty in the oil markets. This system was important in bringing stability to the oil prices.
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