About the United States Dollar (USD)
What Is the United States Dollar (USD)?
The United States Dollar (USD), designated by the ISO code USD and commonly abbreviated as US$, is the official currency of the United States of America. It serves as legal tender in U.S. territories like Puerto Rico and Guam, and is adopted by 11 other countries, including Ecuador and El Salvador. The Federal Reserve regulates USD issuance, while the U.S. Treasury oversees printing and minting.
History of the USD
- 1785: Continental Congress adopted the dollar as the national currency.
- 1792: Coinage Act established bimetallic (gold/silver) standards.
- 1944: Bretton Woods Agreement cemented USD as the global reserve currency.
- 1971: USD transitioned to a fiat system, decoupling from gold.
USD Notes and Coins
Denominations:
- Notes: $1, $2, $5, $10, $20, $50, $100.
- Coins: 1¢ (penny), 5¢ (nickel), 10¢ (dime), 25¢ (quarter), 50¢ (half dollar), $1.
Modern bills feature enhanced colors and tactile features for accessibility.
The USD as the World’s Reserve Currency
The USD dominates 59% of global foreign reserves (2022). Its reserve status stems from:
- Economic Strength: Largest GDP and stable financial markets.
- Bretton Woods Agreement: Historical pegging of global currencies to USD.
- Trust: Backed by U.S. government credit.
👉 Explore how cryptocurrencies like MATIC interact with traditional finance
Key USD Financial Tools
US Dollar Index (USDX)
Tracks USD performance against:
- EUR, JPY, GBP, CAD, SEK, CHF.
USD and Gold Relationship
- Pre-1971: Gold standard ensured convertibility.
- Post-1971: Fiat system introduced market-driven valuation.
Converting Polygon (MATIC) to USD
Bitget’s data shows MATIC/USD as Polygon’s top currency pair. Use our calculator for real-time conversions.
FAQ
Q: Which countries use USD as official currency?
A: Ecuador, El Salvador, Zimbabwe, and 9 others.
Q: How does the Fed influence USD value?
A: Through monetary policy like interest rate adjustments.
Q: Why is USD called a 'reserve currency'?
A: Central banks hold USD for international transactions and stability.