The Dollar is the official unit of currency of the United States of America. Its abbreviated with a ‘$’ sign and placed with a ‘US’ to differentiate it from other dollar based currencies such as the Australian Dollar. Other nicknames for the US. currency include the buck, greenback, clam, dough and even dead presidents. The US. Dollar was established by the Congress of Confederation of the United States on July 6, 1785. There are several other countries that use the US. Dollar as its official currency, or used in some countries in a ‘de-facto’ capacity. The US. Dollar is the most used currency in international transactions and is also the world’s largest ‘foreign reserve’ currency, with the majority of American notes held outside the United States. It is also the most traded currency in terms of foreign exchange trading.
The US. currency takes decimal form and is divided into 100 cents. The separate denominations for American coins are ‘1c’ (penny), ‘5c’ (nickel), ‘10c (dime), ’25 cent’ (quarter). There are also ‘50c’ and ‘$1’ coins in circulation. The denominations for American bank notes (bills) are $1, $5, $10, $20, $50 and $100. There is also a $2 note in circulation, released in 1976 to commemorate the 200th anniversary for American Independence.
In first 2/3 of the 20th century, the US. Dollar was backed by reserves of gold bullion, until it officially went off it in order for it to become a floating currency, meaning a currency influenced by the market forces of supply and demand. The US. Dollar is considered the standard currency in the international markets for commodities such as petroleum and gold.
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