The global economy is shaped by various factors, the main of which is money. The most famous and sought-after currency is the dollar. Indicating the price of something, after the number corresponding to the value, put the sign "$" or the abbreviation "USD". When did the first dollar appear? And what is USD? Consider right now.
A bit of history
No matter how strange it may seem, the United States, whose main currency is the dollar, is neither capable of supporting it nor issuing it. And the leading world monetary unit itself has a completely European origin.
In 1519, a medieval coin appeared, called "thaler," which will later become the progenitor of the dollar. It happened in Germany. The official year of issue of the first coin (silver USD) is considered to be 1794, and the first paper banknote - 1861.
It was in the mid-19th century that the US Federal Reserve issued a currency called the dollar. To date, the US Central Bank maintains a record of USD and is responsible for its distribution.
According to the US Ministry of Finance, about 99% of dollar bills and coins are in free circulation today.
Meaning of the word USD
The dollar is the official state currency of not only the United States, but also other countries (El Salvador, Bermuda, the Marshall Islands, etc.). In addition, the same name banknotes are used in some states, for example, in New Zealand, Australia, and Canada.
Despite this, its designation is unchanged: “USD”. It was adopted in accordance with the requirements of international ISO standards. What is USD?
The abbreviation can be decrypted as the United States Dollar, in Russian it is called the US dollar.
The cost of $ 1 is 100 cents. Coins are issued in denominations:
Paper bills are issued in denomination:
- 1,
- 2
- 5,
- 10,
- 20,
- fifty,
- 100 dollars.
World leader
Almost from the moment of creation, the dollar has been dominant among other currencies. It is not for nothing that it has been called the world reserve monetary unit and has been supporting its rights for more than several decades.
A huge number of states, various in size and origin of corporations, and even ordinary people prefer the dollar. Therefore, speaking about what USD is, it can be called the leading monetary equivalent. Moreover, this has been happening for a long time, regardless of various events in the global economy, even those that may adversely affect its condition.
Strong competition in the past decade has created the dollar monetary unit of the EU, called the "Euro". Today they are both widely distributed and recognized by all states of the world.