Strong dollar policy

The strong dollar policy is the United States economic policy based on the assumption that a strong exchange rate of the United States dollar (where a smaller dollar amount is needed to buy the same amount of other currency than would otherwise be the case) is in the interests of the United States and the whole world. It is said to be also driven by a desire to encourage foreign bondholders to buy more Treasury securities. The United States Secretary of the Treasury occasionally states that the U.S. supports a strong dollar. The policy keeps inflation low, encourages foreign investment, and maintains the currency's role in the global financial system.