I.n every major crisis in the world, the demand for dollars increases. Because the status of the American currency as a kind of key currency in the world, the openness and depth of the American capital markets and the search by many investors for safe investments make the dollar particularly popular. But in severe crises, there is even a shortage of American financial markets, which are very liquid by international standards, which can cause companies and financial institutions that rely on dollars to experience considerable difficulties.
In such critical situations it is the hour of the American central bank, which, not infrequently in association with central banks in other countries, provides the international financial markets with the American currency quickly and without red tape. These practices can be observed again and again since the 1960s; most recently in a big way during the financial crisis 2007 to 2009. Now the Fed has another appearance in the corona crisis, which underpins its role as a de facto world central bank.