One of the most common abbreviations in the foreign exchange markets is USD. What kind of currency is hidden under this combination of letters is not difficult to guess, since the reduction is found in every city, in each exchange office. Decrypted USD sounds like the United States dollar, or United States dollar.
The national currency of America
The US dollar is indicated by the sign "$". Its ISO banking code stands for USD. The American currency is used in more than 18 countries, including Bonaire and Ecuador, the old British territories and the Virgin Islands, East Timor and El Salvador, Panama and Saba, Zimbabwe and the USA, and others. It corresponds to 100 cents.
Currency is an international currency of account. This is determined by the demand for the dollar when concluding contracts between countries associated with the import and export of goods or services. One of the major currencies in the world in which the majority of contracts in key economic markets is nominated, including in the energy segment, is USD. The dollar is actively used in the implementation of foreign exchange transactions in the international foreign exchange 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 reaches several trillion dollars daily. The USD 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 other currencies is the largest.
Statistics of the use of the American dollar in exchange transactions according to 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% of 200% compared to the previous 85.6%. The second place in the number of exchange transactions was shared by the euro and the yen. A decrease in the number of exchange operations related to the dollar was noticed during periods of global crisis by about 2-3%. Today you can see the exact opposite effect. The indicator reached almost 100%, as the economy of America is growing stronger every day. Compared to other countries of the world that are currently experiencing temporary difficulties, the United States plays a dominant role in shaping the global economy.
American dollar history
The dollar received the status of the national currency of America after the state gained independence. From that moment, the official history of the USD began. What currency so quickly managed to become world, let's try to figure it out. Its first analogue is a silver coin, which was gradually replaced by green-gray notes and banknotes. 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 printed about 60 million dollars, 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 granted precisely to the American USD. What kind of currency is this dollar, it becomes clear from its status. The monetary unit is used by almost all countries of the world to create a financial "airbag", which during times of crisis is able to maintain the state economy at a fairly high level. After gaining reserve status by the monetary unit, America 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 world currencies that have the title of the most liquid commodity in the world is USD. What kind of currency it is and what impact it has on the global economy, one can only imagine. At the moment, the dollar is growing, and today for one monetary unit the United States will have to pay about 70 rubles.