The US dollar is the world'sforemost international reserve currency-it is held by central banks, international financial institutions, households and drug lords all over the world both as a store of value and as a medium of exchange in situations where the local currency is less useful because of low liquidity, capital controls or high inflation.

What is the effect of reserve currency status on the velocity of the dollar? On US seignorage revenue?

Does the velocity of money measures the money circulated in the US economy only?