Inflation protection: Investing in dollar-denominated assets can help preserve purchasing power in economies with high inflation.
Stability in times of volatility: The dollar is considered a strong currency and, in periods of economic uncertainty, it can serve as a safe haven.
Geographic diversification: Investing in dollars allows exposure to international markets, reducing risks associated with a single economy.
Growth opportunities: Dollar assets, such as US stocks or US government bonds, may offer upside potential.
Hedge against local devaluation: For investors in countries with volatile currencies, holding dollar assets can protect against local currency devaluations.
These factors make dollar diversification an attractive strategy for many investors.