Why Global Investors Always Hold US Dollars

Why the US Dollar Specifically

The US dollar is the textbook example. It has been the world’s dominant reserve currency since 1945, with dollar-denominated securities — mostly US Treasuries and investment-grade corporate bonds — making up roughly 57% of global foreign exchange reserves, worth an estimated $7.4 trillion. It comfortably outpaces every other currency, including the euro at around 20%, the yen at 6%, and the pound at 5%.

That dominance isn’t accidental. The US dollar also dominates global trade invoicing and foreign exchange transactions, underpinned by deep, liquid US financial markets and decades of institutional trust. This is established financial history, not a forecast or an opinion — it’s simply how the global monetary system has been built for the last 80 years.

What “Reserve Currency” Means for Everyday Investors

Here’s the part that’s easy to miss: holding US dollars isn’t just something large institutions do. Central banks around the world — from China and Japan to Switzerland, India, and beyond — hold US dollars as part of their official reserves, precisely because they value a stable, liquid store of value. If entire governments structure their reserves this way, it’s worth understanding why individual investors might consider a smaller-scale version of the same logic.

Other Safe-Haven Currencies

The US dollar isn’t the only one. The Swiss franc and Japanese yen are also widely recognized safe-haven currencies, valued for similar reasons — political stability, strong institutions, and deep capital markets. This is a well-established category in global finance, not a single-currency pitch.

Why This Matters for Investors Like You

Just as countries diversify their reserves for stability, individuals can apply a smaller version of the same principle: holding part of one’s savings in a currency that tends to behave differently from one’s home currency during periods of volatility. This isn’t a fear-driven move — it’s a mainstream practice among globally-minded investors who simply prefer not having all their financial eggs in one basket.

How to Invest Your US Dollars

The real barrier is usually access, not appetite — many assume holding US dollars productively means going through a separate forex platform or a much larger starting amount. Neither is necessary.

Platforms like FSM Global give you a full suite of ways to put US dollars to work, not just a place to park them:

• US Cash Account: Safe and secure. Earn attractive interest while waiting for trade placement.
• US Auto-Sweep: Automatically invests excess USD for a higher indicative yield than the cash account. No lag time when you use it to purchase other investment products.
• US Treasuries & USD-denominated bonds: US Treasuries are backed by the US government. Buy bonds from big tech companies such as Alphabet, Apple, Meta, and Microsoft.
• US Markets access: Trade US-listed companies such as Nvidia, Micron, Tesla, SpaceX, and many more.

Getting started

The simplest first step is also the smallest one: open a multi-currency investment account, move a portion of your savings into USD, and let it start earning from day one.

Click here to open an FSM Global SG account.

Not sure how to start?

Find out how you can use Wise to transfer USD to FSM Global.

Get complimentary investment advice from our Investment Advisory Team.

Or get in contact with us via email, call or live chat.

About FSM Global

FSM Global is the business-to-consumer platform of iFAST Corporation Ltd., a fintech company listed on the Singapore Exchange. Founded in 2000, FSM Global has spent over 25 years helping investors invest globally and profitably, and is now trusted by investors across more than 100 markets worldwide.

The platform offers a comprehensive range of products for first-time investors and seasoned professionals alike, backed by competitive, transparent pricing — including low flat fees on ETFs and zero sales charge on unit trusts — all supported by a long-standing, committed presence in Singapore's financial sector.

Investors outside of Singapore can open an FSM Global account fully online. To do so, you will need to provide essential personal information and identity verification documents, including a valid passport.