The U.S. dollar's dominance in global finance is attributed to its institutional strength rather than coercion, according to historical data. A key example is the 1970s Saudi investment in U.S. Treasurys, which underscored the dollar's appeal due to its liquidity and safety. Federal Reserve Chair Powell emphasized that the dollar's role is linked to democratic governance, although concerns about counter-terrorism financing and shifting capital flows continue to challenge long-term confidence in the currency.