USD: what is the currency, its role in the global economy

One of the most common abbreviations forcurrency markets is USD. What kind of currency is hidden under this combination of letters, it's easy to guess, since the reduction occurs in every city, in every exchange office. USD in decrypted form sounds like the United States dollar, or the dollar of the United States of America.

National currency of America

The US dollar is indicated by the sign "$". Its bank code ISO corresponds to the abbreviation 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 United States, and others. It corresponds to 100 cents.

The monetary unit is an international settlementcurrency. This is determined by the demand for dollars in concluding contracts between countries associated with the import and export of goods or services. One of the world's major currencies in which most contracts in key economic markets are nominated, including in the energy segment, is USD. The dollar is actively used in the implementation of foreign exchange operations in the international foreign exchange market and is an indispensable tool in concluding trade and foreign exchange transactions and investments. With the help of a monetary unit, many investors carry out risk insurance in international markets. The volume of operations on the exchange of currencies daily reaches an indicator of several trillion dollars. The USD rate determines the prime cost of most of the world's currencies, as it is included in the bi-currency basket, and its percentage in it against the background of other currencies is the largest.

Statistics on the use of the US dollar in exchange operations based on BIS data

According to the Bank for International Settlements (BIS),it is the dollar that accounts for the largest volume of world exchange transactions. In 2011, its share slightly decreased and amounted to only 84.9% of the 200% against the background of the previous 85.6%. Second place in terms of the number of exchange operations divided the euro and the yen. The decrease in the number of exchange transactions related to the dollar was noticed during the periods of world 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 in the world, which are currently experiencing temporary difficulties, the United States plays a dominant role in shaping the world economy.

History of the US dollar

The dollar received the national currency of Americaafter the state gained independence. From this moment the official history of the USD began. What kind of currency so quickly managed to become a world, try to figure it out. Its first analogue is a silver coin, which was gradually replaced by banknotes and notes of a greenish-gray color. Despite the fact that the dollar was officially approved in 1875, until 1861 there was no unified monetary system on the territory of America. It was in 1861 for the first time issued a decree and printed about 60 million dollars, which at that time was considered an incredibly large sum.

Reserve world currency

In accordance with the Bretton Woods Agreement,In 1994, the status of the world reserve currency was granted to the US dollar. What kind of currency is this dollar, it becomes clear from its status. The monetary unit is used practically by all countries of the world to create a financial "airbag", which in times of crisis is able to support the economy of the state at a sufficiently high level. America after receiving the monetary unit of reserve status was able to cover the lack of a balance of payments by the dollar and strengthen the position of domestic companies in the world market. One of the world's currencies, which have the title of the most liquid commodity in the world, is USD. What kind of currency this is and what impact it has on the world economy, one can only imagine. At the moment, the dollar is growing, and today, for one currency, the United States will have to pay about 70 rubles.