[USFRIENDINVICTORIA]

That essentially what the U.S. does, in part, whenever the greenback is devalued, vs. other currencies. Having the world's reserve currency gives you that power.

Most international debt of most countries (e.g. Canada) is denominated in U.S. dollars. When the Loonie is devalued against the Greenback, as happened in recent months, Canada's debt obligations automatically go up. A dollar we borrowed last year is now equal to over $1.20 CDN in debt -- because that's what it costs us to convert to U.S. dollars for repayment.

OTOH, U.S. debt is denominated in ... U.S. dollars. If you were to devalue the greenback by (say) 50%; you would, in effect, only owe half as much as you would before the devaluation.

If the greenback loses reserve currency status (something that's happened to all previous reserve currencies), that could cost the US. trillions.

[Toddsterpatriot]

That essentially what the U.S. does, in part, whenever the greenback is devalued

There is no fixed exchange rate, how do we devalue?