DOLLAR DIPLOMACY

Dollar Diplomacy

Dollar Diplomacy

Introduction

US dollar currency can be stretched back to 1690, even before the birth of United States, when it was just a region of colonies patch worked together. But it has a strong background, and there are many reasons why the US dollar stands out from the currency of the world. Dollar is widely regarded as the dominant reserve currency all over the world. It has maintained its status as a reserve currency and major currency for the international trade transaction settlement for many years despite its financial recessions. The reason Dollar became the foreign reserve currency in 1920 was the fall of Sterling's share in the global exchange reserves. It very soon materialized its dominance over other currencies and became the most acceptable currency because of its liquidity and frequent use. However US Dollar diplomacy under the president William Howard was one of the efforts of United States in East Asia and Latin America with the use of economic powers to foreign countries in guaranteeing them loans. This dollar diplomacy was a policy which was mainly focused on increasing the interests of US in foreign countries and to help encourage the US capital in foreign countries.

Discussion

Historical significance

However, according to Bailey, Dollar Diplomacy is not something new to this planet; it has been existing since past. Dollar diplomacy is the name by which the overseas expansion, dominance and growth has come to be the reality of the US citizens and its affiliates. It was basically an outgrowth of European imperialism since it involved cross border cooperation. It was a new form of financial imperialism that spread across the globe with major proponents being European countries. Though this was basically a trade policy under which the US aimed to collaborate with its trade partners in terms of trade and diplomatic relations, it was largely a financial policy that was to be used for union and formation of common currency between the collaborating partners. Rosenberg notes that one of the goals of dollar diplomacy was to offer loan advances to unstable members in which US had interest of extending its power over. This goal was however objected by majority of the American citizens especially the ant-imperialist who believed that extending loans to foreign nations while at the same time exercising control over them was a form of financial imperialism and exploitation in disguise.

Summary of the Document

In Roosevelt's invention of a new policy, there was a subtle element which was a New York company that could had over ruled Republic's finances of Dominican in the year 1893. There had been a strong acquaintance of Roosevelt with the company and its interests. In question, these interests belonged to the main company which was known as San Domingo improvement Company (SDIC). From the year 1890, this SDIC was enjoying the close relationships which were not a common relationship but instead it was political relationships in Washington from the time when the company's organization started. The company after it got harried from the ...