United States Dollar (USD)

United States Dollar (USD) is the official currency of the United States of America. It is denoted by the ISO 4217 code USD. The United States dollar is one of the most widely recognized and accepted currencies in the world.

Here are some key details about the United States Dollar (USD):

1. Subunits: The dollar is divided into 100 cents. Cents are the smaller units of USD and are commonly used in daily transactions.

2. Usage: USD is the legal tender in the United States and is widely accepted for all types of transactions, including buying goods and services, paying bills, and conducting financial transactions. It is also accepted in many other countries as a widely used international currency.

3. Exchange Rate: The exchange rate of USD can fluctuate and is influenced by various factors, including economic indicators, interest rates, geopolitical events, and market sentiment. The exchange rate is determined by the foreign exchange market, where currencies are bought and sold.

4. Banknotes and Coins: USD is available in both banknotes and coins. Banknotes are commonly found in denominations of $1, $5, $10, $20, $50, and $100. Coins are available in denominations of 1 cent (penny), 5 cents (nickel), 10 cents (dime), 25 cents (quarter), and higher denominations.

5. Federal Reserve System: The United States’ central bank, known as the Federal Reserve or the Fed, is responsible for issuing and regulating the supply of USD. The Federal Reserve controls monetary policy and aims to maintain price stability and promote economic growth.

6. Global Reserve Currency: The US dollar holds a unique position as the world’s primary reserve currency. Many central banks and international institutions hold USD as part of their foreign exchange reserves. It is widely used in international trade, finance, and as a benchmark for commodity prices.

The United States Dollar (USD) is a significant currency in the global economy, playing a vital role in international trade, investment, and finance. Its stability, liquidity, and widespread acceptance make it an essential currency for businesses and individuals worldwide.