Abstract: This paper presents a new theory on the US exorbitant privilege that it is service fee paid by the rest of the world to the US in contrast to the conventional view of insurance premium. In good times, the rest of the world buys low yield US treasuries for convenience purposes, while the US buys high yield foreign assets. In crisis times, the implicit fee becomes larger as the global financial institutions demand liquidity offered by the US treasuries. I build a two-country DSGE model to illustrate my service fee mechanism.