The U.S. dollar is the globe’s largest traded currency and is often abbreviated as “USD” with the sign of “$”. The North American dollar has average volume trade over $1 trillion. It is the official currency of the United States since 1785. Before USD, Americans used a patchwork method of untrustworthy continental currency, including British pounds and other foreign currencies.
Several times Congress modified the design of the dollar and underlying commodities until the Federal Reserve Act of 1913. After this amendment, the U.S. dollar turned into a Federal Reserve note, which is exchangeable on demand for the precious metal.
The U.S. dollar has been acting as the reserve currency of several countries. Several Asian, European and African countries maintain their reserve in dollars instead of stockpiling gold and silver.
Unlike other major currencies, the U.S. dollar exchange rate has never been devalued or hyperinflated to handle its host country’s debt. Unlike other significant monetary standards, the United States dollar has never been cheapened or hyperinflated to handle its host nation’s obligation. The U.S. dollar has never been rejected as legitimate tender, which unfathomably expands trust in the soundness this currency. In fact, the U.S. dollar is always considered as the global currency.
Whenever, global stock markets tumble, traders rush to buy the North American dollar to protect their wealth against the down-turn, as the U.S. dollar currency rate always remain stable with few short falls. The North American economy is the globe’s largest economy, which is providing a steadiness to the exchange rate of the dollar against the basket of other currencies.