USD

United States Dollar

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Series 2009 $1 bill

ISO 4217
Code	USD (numeric: 840)
Subunit	0.01
Unit
Plural
Symbol	$ ‎
Nickname

The United States Dollar (USD, $) is the official currency of the United States of America. It is widely used in international transactions and is the world's primary reserve currency. The dollar is divided into 100 smaller units called cents.

History

The United States Dollar was first established as the country's official currency by the Coinage Act of 1792. The act created the U.S. Mint and established the dollar as the standard unit of money, with coins made of gold, silver, and copper. The dollar was initially based on the Spanish dollar, which was widely used in the Americas during the 18th century.

In 1861, the U.S. government issued its first paper currency to finance the American Civil War. These notes were known as "greenbacks" due to their color. The Federal Reserve System was established in 1913, and it became the central bank of the United States, responsible for issuing Federal Reserve Notes, which are the predominant form of U.S. currency today.

Design and Features

U.S. banknotes are printed by the Bureau of Engraving and Printing and feature portraits of notable American figures, such as George Washington on the $1 bill and Abraham Lincoln on the $5 bill. The reverse side of the notes often depicts important symbols or landmarks, such as the Great Seal of the United States or the Lincoln Memorial.

Coins are produced by the United States Mint and include denominations such as the penny (1¢), nickel (5¢), dime (10¢), quarter (25¢), half dollar (50¢), and dollar ($1). Coins feature various designs, including historical figures and national symbols.

Role in the Global Economy

The U.S. dollar is the most widely used currency in international trade and finance. It serves as the world's primary reserve currency, held by central banks and financial institutions around the globe. The dollar's stability and liquidity make it a preferred currency for international transactions.

The dollar is also used as the official currency in several countries outside the United States, such as Ecuador, El Salvador, and Panama. This phenomenon is known as "dollarization."

Monetary Policy

The Federal Reserve System is responsible for the monetary policy of the United States. It aims to promote maximum employment, stable prices, and moderate long-term interest rates. The Federal Reserve uses tools such as open market operations, the discount rate, and reserve requirements to influence the supply of money and achieve its policy goals.

Also see

• Federal Reserve System
• Bureau of Engraving and Printing
• United States Mint
• Coinage Act of 1792
• Dollarization