2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
One of the most common abbreviations in the currency markets is the USD. It is easy to guess what kind of currency is hidden under this combination of letters, since the abbreviation is found in every city, in every exchange office. USD in decoded form sounds like the United States dollar, or the dollar of the United States of America.
National currency of America
The US dollar is denoted by the sign "$". Its ISO bank code corresponds to the abbreviation USD. The American currency is used in more than 18 countries of the world, including Bonaire and Ecuador, the old British territories and the Virgin Islands, East Timor and El Salvador, Panama and Saba, Zimbabwe and the USA, others. It corresponds to 100 cents.
The currency is the international settlement currency. This is determined by the demand for the dollar when concluding contracts between countries related to the import and export of goods or services. One of the world's main currencies, in which most contracts are nominated in key economic markets, including in the energy segment, is USD. The dollar is actively used in the implementation of foreign exchangeoperations on the international currency market and is an indispensable tool in the conclusion of trade and foreign exchange transactions, investments. With the help of a monetary unit, many investors carry out risk insurance in international markets. The volume of currency exchange transactions daily reaches several trillion dollars. The USD exchange rate determines the cost of most world currencies, since it is included in the dual-currency international basket, and its percentage ratio in it against the background of other currencies is the largest.
Statistics of the use of the US dollar in exchange transactions according to the BIS
According to the Bank for International Settlements (BIS), it is the dollar that accounts for the largest volume of exchange transactions in the world. In 2011, its share decreased slightly and amounted to only 84.9% out of 200% against the background of the previous 85.6%. The second place in terms of the number of exchange transactions was shared by the euro and the yen. A decrease in the number of exchange transactions associated with the dollar was noticed during periods of global crises by about 2-3%. Today you can see quite the opposite effect. The indicator has reached almost 100%, as the American economy is growing stronger every day. Against the backdrop of other countries of the world that are currently experiencing temporary difficulties, the United States plays a dominant role in shaping the global economy.
History of the US dollar
The dollar received the status of America's national currency after the state gained independence. From that moment began the official history of the USD. What kind of currency managed to become global so quickly, let's tryfigure out. Its first analogue is a silver coin, which was gradually replaced by banknotes and banknotes of a greenish-gray color. Despite the fact that the dollar was officially approved in 1875, until 1861 there was no unified monetary system in America. It was in 1861 that the decree was first issued and about 60 million dollars were printed, which at that time was considered an incredibly large amount.
Reserve world currency
In accordance with the Bretton Woods agreement in 1994, the status of the world reserve currency was given to the American USD. What kind of currency this dollar becomes clear from its status. The monetary unit is used by almost all countries of the world to create a financial "safety cushion", which in times of crisis is able to support the state's economy at a fairly high level. America, after receiving the reserve status of the monetary unit, was able to cover the deficit of the balance of payments with the dollar and strengthen the position of domestic companies in the world market. One of the currencies of the world that have the title of the most liquid commodity in the world is the USD. What kind of currency it is and what impact it has on the world economy, one can only imagine. At the moment, the dollar is growing, and today you will have to pay about 70 rubles for one US currency.
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