United States Dollar

Article

August 12, 2022

The United States dollar (symbol: $; code: USD; also abbreviated as US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official currency United States and several other countries. The Coin Act of 1792 introduced the U.S. dollar. equivalent to the Spanish silver dollar, dividing it into 100 cents, and allowing the minting of coins denominated in dollars and cents. U.S. banknotes issued in the form of Federal Reserve Notes, which are popularly called the greenback because of its dominant green color. The monetary policy of the United States is carried out by the Federal Reserve System, which acts as the country's central bank. U.S. Dollar originally defined under the bimetallic standard of 371.25 grains (24.057 g) (0.7735 troy ounce) of pure silver or, from 1837, 23.22 grains (1.505 g) of pure gold, or $20.67 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. From 1934, its equivalent to gold was revised to $35 per troy ounce. Since 1971 all links to gold have been revoked. U.S. Dollar it became an important international reserve currency after the First World War, and was replaced by the pound sterling as the world's main reserve currency by the Bretton Woods Treaty towards the end of the Second World War. The dollar is the most widely used currency in international transactions, and a free-floating currency. It is also the official currency in some countries and the de facto currency in many others, with Federal Reserve Notes (and, in some cases, U.S. coins) used in circulation. As of February 10, 2021, currency in circulation amounted to US$2.10 trillion , $2.05 trillion of which was in Federal Reserve Notes (the remaining $50 billion was in old-fashioned United States coins and banknotes).

Etymology of the word "dollar"

In the 16th century, Prince Hieronymus Schlick of Bohemia began minting coins known as joachimstalers, named after Joachimstal, the valley where silver was mined. In turn, the valley was named after Saint Joachim, where thal or tal, a cognate of the English word dale, is German for 'valley.' Joachimstaler was later shortened to taler in German, a word that was eventually found in many languages, including: tolar (Czech and Slovak); daler (Denmark and Sweden); dalar and daler (Norway); daler or daalder (Netherlands); talari (Ethiopia); tallér (Hungary); tallero (Italy); لار (Arabic); and dollars (UK). The name of the taler is also spread to coins elsewhere of the same size and weight. The Leeuwendaler ('lion dollar') is a Dutch coin depicting a lion. From the 17th century to the early 18th century, this coin became a popular currency for foreign trade in the Dutch East Indies, including in the New Dutch Colony of North America (now the metropolitan area of ​​New York), and the other Thirteen British Colonies because it contained more less silver than most of the other big coins available. With the discontinuation of the lion's dollar (leeuwendaler) before 1690 and the increase in value of Spanish-American coins originating in Mexico from the 1720s, it was the Spanish peso that American colonists increasingly referred to as the dollar. The Spanish dollar, known as the 'piece of eight', was widely distributed in the Spanish colonies of the New World and in the Philippines. This is where the name dollar comes from, which is now the name of the official currency of the United States.

Denomination

Coins

Banknotes

Reference

Footnote

External links

Historical and current banknotes of the United States (UK) (Germany)