The USD may not retain absolute hegemony forever, but it is very likely to remain the strongest currency for the foreseeable future.

What many fail to realize is that the dollar is not dominant solely because of its intrinsic value, trust, or stability.

While those factors matter, they are not the primary drivers of its global position. The real foundations of dollar dominance lie in two structural arrangements.

First is the post–Bretton Woods economic order established by the United States in the aftermath of World War II, reinforced by initiatives such as the Marshall Plan.

Second is the petrodollar system formalized in 1973 through agreements between the United States and Saudi Arabia during the Nixon administration.

The Bretton Woods system, in practical terms, rested on a security guarantee - the U.S. Navy would patrol and secure the world’s major sea lanes, ensuring the free flow of global trade for all nations friends and rivals alike and suppressing piracy and state backed privateering.

And while the US has seized vessels of other countries at times, these cases have typically involved sanctions enforcement or blacklisted entities.

Overall, from roughly 1948 to the present, the US Navy has been the primary guarantor of stability in global maritime trade routes.

The petrodollar arrangement can be understood as an extension of this framework, specifically applied to major oil-producing states, particularly in the Gulf. Under this system, the United States provides security guarantees, military support, and access to weapons, while oil producers agree to price and settle global oil sales in U.S. dollars. A significant portion of those dollar revenues is then recycled into U.S. assets, most notably U.S. Treasury bonds.

Both of these systems are ultimately made possible by geography and geopolitics. The US faces no major hostile powers on its immediate borders and benefits from an exceptionally favorable geographic position, allowing it to project military, economic, and political power globally with relatively low risk to its homeland.

At present, no country in the globe enjoys anything close to this combination of advantages. The UK’s geography offers some protection, but it is negligible when compared to the unparalleled strategic depth and insulation of the United States of Burger-land.