The U.S. dollar is the most important currency in the world in part because of the robustness of the American economy.
The dollar, which is the most widely used currency in the world, is also the reserve currency, which means that central banks all around the world hold significant amounts of it. The U.S. dollar usually referred to as the “greenback,” is one of the most actively traded currencies on the foreign exchange market.
A number of American territories and other sovereign countries all over the world use the dollar as their official currency. Additionally, it serves as the de facto standard of payment in many other countries that take dollars in addition to their native currencies.
Here is a complete list of countries throughout the world where the dollar is accepted as legal tender if you’re a frequent traveler, someone who conducts business abroad, or an ex-pat.
One year after the Federal Reserve Bank was established, in 1914, the United States printed its first Federal Reserve note: a $10 bill. The $1 Federal Reserve note, which featured George Washington, wasn’t released until 1963, despite the fact that the $1 U.S. note was first printed in 1862.
The Bretton Woods Agreement was drafted in 1944 by the United States and its allies to establish a new global economic and monetary order. The International Monetary Fund (IMF) and the World Bank were established as a result of the accord, and the US dollar became the international reserve currency. The U.S. dollar’s value was fixed in relation to other currencies by the central banks across the world.
The Bretton Woods Agreement came to an end in 1973. The U.S. dollar, however, continued to be used as a reserve currency by numerous countries. Because it is the most traded currency and the US economy is still robust, the US dollar continues to be the principal reserve currency. Eleven foreign countries and five U.S. territories use the dollar as their official medium of exchange, while more than 65 countries have their currencies pegged to it.
If you are interested in more articles like this, here’s one about the currency used in Krakow.
