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Editing: Ahmed Shawky
Mubasher: Unusually, the $ 100 paper trading volume has recently surpbaded the $ 1 for the first time in its history.
In other words, the most valuable securities in the United States ($ 100), issued for the first time in 1862, are the most widely traded.
According to a report released by the International Monetary Fund (IMF), the size of $ 100 bills, which are trading more than ever, has almost doubled since the global financial crisis.
So, what explains this boom in the circulation of a bank note with the effigy of Benjamin Franklin, one of the founders of the United States? Especially since the options of not coping with an increase in liquidity are increasing day by day?
In this age that has become numerically all, do Americans suddenly turn to nostalgia for the high categories of the dollar?
Not quite, while overall demand for the US dollar is up, most of the $ 100 titles are outside the United States.
According to the Chicago Fed, nearly 80% of US bank notes and more than 60% of all US banknotes are abroad, compared to about 30% in 1980.
Geopolitical instability may be one of the reasons for the $ 100 increase in bank notes, according to Federal Reserve economist Ruth Judson.
"External demand for the US dollar will likely be motivated by its secure badet status," Judison said.
According to a commentary published by "Judson" in 2017, global demand for US dollars increased between the 1990s and the beginning of 2000, and then stabilized or decreased after the emergence of the US dollar. euro in 2002.
The decline in demand continued until the end of 2008, when the global financial crisis led to a new demand for US dollar banknotes.
Kenneth Rogoff of Harvard University argues that high-quality banknotes and illicit activity are closely related.
"Worldwide, high-value currencies are used primarily to avoid taxes, regulation and illegal activities," Rogoff said.
"Housing units and houses in big cities are paid worldwide in cash," he said. "This is not because buyers are worried about bank failures."
Another factor that could have an influence is that the secret demand for paper money has certainly increased in part because interest rates and inflation are exceptionally low, according to Rogoff.
But why the dollar? This is perhaps his role as the dominant international reserve currency, according to Rogoff.
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