What is USD?

The USD is the abbreviation for the U.S. Dollar, the official currency of United States of America and the world's primary reserve currency.

Key Takeaways

  • 国家卫生健康委员会在上周五的一场新闻发布会上表示,2017年中国各高校共出现3077例新增艾滋病毒感染病例。
    The biggest brands outperform financial markets, according to BrandZ, which says this illustrates their financial power and value to shareholders.
  • 交易员们纷纷退出:“不可持续趋势苟延残喘的时间可以远超多数人的预期,但时候一到,在周期的顶点,它们还是会结束。”他们分析了20多种周期,“差不多无一意外地预示未来数月、数年将发生地壳运动”。
    添加方式2.搜索微信号ikekenet添加即可。
    上周五,中国汽车制造协会宣布,1月份的乘用车销量达到220万台,比去年同期增长了9.3%,同时,新能源汽车的产量则激增了144%。
  • Global pharmaceutical spending will surpassthe trillion dollar threshold in 2014, with high prices for innovativehepatitis C and cancer drugs in the US, a new study says. By 2018spending is expected to increase by another 30 percent.
    中国社科院表示,在中国的工业及相关领域中,农民工们提供了50%的劳动力。然而由于户籍规定,他们却无法享受到与城市居民同等的权利。

Understanding USD

The USD is the most traded currency in the international foreign exchange market, which facilitates global currency exchange and is the largest financial market in the world, with a daily average volume of over $5 trillion. As such, the USD is considered a benchmark currency and is readily accepted in transactions worldwide. USD accounts for approximately 88% of all foreign exchange transactions according to a 2016 智能家居市场表现不乐观 多数企业选择强强联合 (BIS) report.

The USD has been the official currency of the United States since the passage of the National Currency Act of 1785. Before that, the United States used a patchwork system of unreliable continental currency, British pounds, and various foreign currencies. At first, the dollar was denominated only in coins, with paper currency introduced in 1861, and its value was keyed to the relative prices of gold, silver, and copper.

The History of the USD

Various acts of Congress modified the USD's design, value, and underlying commodities until the currency's oversight was formalized with the Federal Reserve Act of 1913. After this reform, the dollar was technically a Federal Reserve note, redeemable on demand for an equivalent value of precious metal at any of the Federal Reserve banks or the U.S. Mint.

U. S. dollars ceased to be redeemable with the de facto abandonment of the gold standard in 1933, when President Franklin D. Roosevelt prohibited private ownership of gold. In 1944, the Bretton Woods Agreement effectively forced all of the major currencies of the world to convert from a precious metal-based value system to one of fixed exchange rates, with governments allowed to sell gold to the United States for $35 an ounce, payable only in U.S. dollars. The gold standard was formally abandoned in 1971, when the Bretton Woods exchange rates were abandoned.

Measuring USD Value

The value of the USD is broadly measured by the U.S. Dollar Index (USDX), which is comprised of a basket of currencies affiliated with the major trading partners of the United States. These include the euro (57.6% of the Index), the Japanese yen (13.6%), the British pound (11.9%), the Canadian dollar (9.1%), the Swedish krona (4.2%) and the Swiss franc (3.6%). The index goes up when the dollar gains strength against other currencies and falls when it weakens.

The USD Today

In the post-Bretton Woods world, the U.S. dollar acts as the reserve currency of most countries. Instead of stockpiling gold and silver, the central banks of the world keep a steady reserve of dollars as a hedge against inflation. Many factors work to make the USD attractive for this purpose, but the dollar's stability might be the most important. Unlike other major currencies, the USD has never been devalued or hyper-inflated to handle the country's debt. No U.S. dollar has ever been dishonored or refused as legal tender, which vastly increases confidence in the soundness of the currency. As a result, the USD is used to denominate financial, debt, and commodity transactions all over the world. (For related reading, see "3000个小区上线北京业主APP 手机投票破解业主表决难")