Why the US uses the strong dollar policy?
Basically, the weaker the dollar is, the more likely another country is to import American goods. When countries buy American goods, they pay for those goods with dollars, because that’s what Americans use. The weaker that dollar is relative to their national currency, the more likely they are to import that product. This is especially important with the emergence of biofuels, because the bulk of the bio components of those fuels will be grown in the US. However, as the previous person said, the stronger the US dollar, the more likely it is for investors to invest. 2% returns on $50 USD, is huge compared to 2% investment on 2 pesos.
