About the United States Dollar (USD)
What Is the United States Dollar (USD)?
The United States Dollar (USD), designated by the ISO code USD and commonly abbreviated as US$, is the official currency of the United States. As one of the world's most influential currencies, it circulates not only in U.S. territories like Puerto Rico and Guam but also serves as the official currency in 11 other countries, including Ecuador and El Salvador.
The Federal Reserve System regulates the USD, ensuring monetary stability, while the U.S. Department of the Treasury oversees currency production.
History of the USD
The USD's origins trace back to 1785 when the Continental Congress adopted it to unify the post-colonial economy. Key milestones:
- 1792 Coinage Act: Established the U.S. Mint and a bimetallic (gold/silver) standard.
- 1944 Bretton Woods Agreement: Made the USD the global reserve currency, pegged to gold.
- 1971 Nixon Shock: Transitioned the USD to a fiat system, decoupling it from gold.
USD Notes and Coins
Current denominations:
- Bills: $1, $2, $5, $10, $20, $50, $100 (higher denominations discontinued in 1969).
- Coins: 1¢ (penny), 5¢ (nickel), 10¢ (dime), 25¢ (quarter), 50¢ (half dollar), $1.
Modern bills feature color variations for security, with plans for tactile enhancements to aid the visually impaired.
The USD as the World’s Reserve Currency
The USD dominates global finance:
- 59% of foreign bank reserves held in USD (2022).
- Backed by the size of the U.S. economy and financial market liquidity.
- Despite debates on "de-dollarization," its supremacy persists.
US Dollar Index (USDX)
The USDX tracks the USD against six major currencies:
- EUR, JPY, GBP, CAD, SEK, CHF.
Created in 1973, it reflects the dollar’s strength post-Bretton Woods.
USD and Gold Relationship
- Pre-1971: USD was gold-backed under the Bretton Woods system.
- Post-1971: Became a fiat currency, with value determined by market dynamics.
👉 Track real-time GRN to USD conversions
GRN to USD Conversion
Bitget's data indicates G/USD as the most traded pair for GRN (currency code: G). Use our calculator for accurate conversions.
FAQ
1. Which countries use the USD as their official currency?
Ecuador, El Salvador, Zimbabwe, and 9 others.
2. Why was the gold standard abandoned?
To allow greater monetary flexibility amid economic shifts (1971 Nixon Shock).
3. What is the USDX’s primary purpose?
To measure the USD’s value relative to other major currencies.
4. Are $500 bills still in circulation?
No, bills over $100 were discontinued in 1969.
5. How does the Fed influence the USD?
Through interest rate adjustments and monetary policy.
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