The United States dollar has increased its importance as an international medium of exchange, maintained its strength as a store of value and reinforced its role as the world’s unit of account. At the same time the capital market has become a major source of funding throughout the world including for developing countries. This context has major financial implications for the United States and for those countries, mainly developing countries, that are anchored to the dollar. These implications are brought to the fore by focusing on some of the main transmission mechanisms of international financial conditions to developing countries and by analyzing the components of the external balance sheets for the United States and for developing countries. The analysis is placed within the context of some of the changes that have occurred in the international financial system and in the composition of international financial flows in the aftermath of the Global Financial Crisis.