View source for United States dollar

{{Short description|Currency of the United States}}
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{{Use mdy dates|date=March 2024}}
{{Use American English|date=September 2018}}
{{Infobox currency
| currency_name = United States dollar
| image_1 = USDnotesNew.png
| image_title_1 = [[Federal Reserve Note]]s (obverse)
| image_2 =
| image_title_2 = [[Quarter (United States coin)|Quarter-dollar (25 cents)]] coin (obverse)
| iso_code = USD
| symbol = [[Dollar sign|$]], US$, U$
| nickname = {{collapsible list
| Ace, bean, bill, bone, buck, deuce, dough, dub, ducat, doubloon, fin, frog, [[United States Note|greenback]], large, simoleons, skins, smackeroo, smackers, [[spondulix]], Tom, yard, and eagle
| '''Plural''':|dead presidents, green, bones, clams
| '''Based on denomination''':|[[George Washington|Washingtons]], [[Thomas Jefferson|Jeffersons]], [[Abraham Lincoln|Lincolns]], [[Alexander Hamilton|Hamiltons]], [[Andrew Jackson|Jacksons]], [[Ulysses S. Grant|Grants]], [[Benjamin Franklin|Benjamins]], C-note, grand, [[sawbuck]], single, Bluefaces, Blue Strips
}}
| frequently_used_banknotes = [[United States one-dollar bill|$1]], [[United States five-dollar bill|$5]], [[United States ten-dollar bill|$10]], [[United States twenty-dollar bill|$20]], [[United States fifty-dollar bill|$50]], [[United States one-hundred-dollar bill|$100]]
| rarely_used_banknotes = [[United States two-dollar bill|$2]] (still printed); [[United States five-hundred-dollar bill|$500]], [[United States one-thousand-dollar bill|$1,000]], [[United States five-thousand-dollar bill|$5,000]], [[United States ten-thousand-dollar bill|$10,000]] (discontinued, but still legal tender); [[United States one-hundred-thousand-dollar bill|$100,000]] (discontinued, not legal tender, and only used for specific purposes)
| frequently_used_coins = [[Penny (United States coin)|1¢]], [[Nickel (United States coin)|5¢]], [[Dime (United States coin)|10¢]], [[Quarter (United States coin)|25¢]]
| rarely_used_coins = [[Half dollar (United States coin)|50¢]], [[Dollar coin (United States)|$1]] (still minted); [[Half cent (United States coin)|{{frac|1|2}}¢]], [[Two-cent piece (United States)|2¢]], [[Three-cent nickel|3¢]], [[Twenty-cent piece (United States coin)|20¢]], [[Quarter eagle|$2.50]], [[Three-dollar piece|$3]], [[Half eagle|$5]], [[Eagle (United States coin)|$10]], [[Double eagle|$20]]
(discontinued, but still legal tender); [[American Gold Eagle|$25]], [[American Gold Eagle|$50]], [[American Liberty high relief gold coin|$100]] (not intended for circulation). <!-- Do not remove these denominations as they are still legal tender -->
| superunit_ratio_1 = 10
| superunit_ratio_2 = 100
| superunit_name_2 = [[Union (United States coin)|Union]] ([[Canceled denominations of United States currency|Proposed, never issued]])
| superunit_name_1 = [[Eagle (United States coin)|Eagle]]
| subunit_ratio_1 = {{frac|1|10}}
| subunit_ratio_2 = {{frac|1|100}}
| subunit_ratio_3 = {{frac|1|1000}}
| subunit_name_1 = [[Dime (United States coin)|Dime]]
| subunit_name_2 = [[Cent (currency)|Cent]]
| subunit_name_3 = [[Mill (currency)|Mill]]
| symbol_subunit_2 = [[Cent sign|¢]]
| symbol_subunit_3 = [[Mill sign|₥]]
| banknote_article = Banknotes of the United States dollar
| coin_article = Coins of the United States dollar
| using_countries = see {{nowrap|1={{slink||Formal users}} (11)}}, {{nowrap|1={{slink||Informal users}} (7)}}
| issuing_authority = [[Federal Reserve]]
| issuing_authority_website = {{URL|https://www.federalreserve.gov/|federalreserve.gov}}
| date_of_introduction = {{Start date and age|1792|4|2}}
| date_of_introduction_source = <ref>{{cite web |title=Coinage Act of 1792 |publisher=[[United States Congress]] |url = http://nesara.org/files/coinage_act_1792.pdf |access-date=April 2, 2008 |url-status=dead |archive-url = https://web.archive.org/web/20040407164627/http://nesara.org/files/coinage_act_1792.pdf |archive-date=April 7, 2004 }}</ref>
| replaced_currency = [[Continental currency]]<br/>Various foreign currencies, including:<br/>[[Pound sterling]]<br/>[[Spanish dollar]]
| printer = [[Bureau of Engraving and Printing]]
| printer_website = {{URL|https://www.bep.gov/|bep.gov}}
| mint = [[United States Mint]]
| mint_website = {{URL|https://www.usmint.gov/|usmint.gov}}
| inflation_rate = 2.6% or 2.3%
| inflation_source_date = [https://www.bls.gov/news.release/cpi.nr0.htm BLS] (October 2024) or [https://www.bea.gov/data/personal-consumption-expenditures-price-index BEA] (October 2024)
| inflation_method = [[Consumer price index|CPI]] or [[Personal consumption expenditures price index|PCE]]
| pegged_by = see {{slink||Pegged currencies}}
}}
The '''United States dollar''' ([[Currency symbol|symbol]]: '''[[Dollar sign|$]]'''; [[ISO 4217|currency code]]: '''USD'''; also abbreviated '''US$''' to distinguish it from [[Dollar|other dollar-denominated currencies]]; referred to as the '''dollar''', '''U.S. dollar''', '''American dollar''', or colloquially '''buck''') is the official [[currency]] of the [[United States]] and [[International use of the U.S. dollar|several other countries]]. The [[Coinage Act of 1792]] introduced the U.S. dollar at par with the [[Spanish dollar|Spanish silver dollar]], divided it into 100 [[cent (currency)|cents]], and authorized the [[Mint (facility)|minting]] of coins denominated in dollars and cents. U.S. banknotes are issued in the form of [[Federal Reserve Note]]s, popularly called greenbacks due to their predominantly green color.
The U.S. dollar was originally defined under a [[bimetallism|bimetallic standard]] of {{convert|371.25|gr}} (0.7734375 troy ounces) fine silver or, from [[Coinage Act of 1834|1834]],<ref>{{cite web |url=https://mises.org/mises-daily/constitutional-dollar |title=A Constitutional Dollar |work=Mises.org |date=March 10, 2010}}</ref> {{convert|23.22|gr}} fine gold, or $20.67 per [[troy ounce]]. The [[Gold Standard Act]] of 1900 linked the dollar solely to gold. From 1934, its equivalence to gold was revised to $35 per [[troy ounce]]. In 1971 all links to gold were repealed.<ref>{{cite web|title=Nixon Ends Convertibility of US Dollars to Gold and Announces Wage/Price Controls|url=https://www.federalreservehistory.org/essays/gold_convertibility_ends|access-date=October 17, 2018|publisher=Federal Reserve Bank of Richmond|archive-date=November 20, 2020|archive-url=https://web.archive.org/web/20201120035204/https://www.federalreservehistory.org/essays/gold_convertibility_ends|url-status=live}}</ref> The U.S. dollar became an important international [[reserve currency]] after the [[World War I|First World War]], and displaced the [[pound sterling]] as the world's primary reserve currency by the [[Bretton Woods Agreement]] towards the end of the [[World War II|Second World War]]. The dollar is the [[Template:Most traded currencies|most widely used currency]] in [[international trade|international transactions]],<ref>{{cite web |url = https://www.federalreserve.gov/aboutthefed/files/pf_4.pdf |title = The Implementation of Monetary Policy&nbsp;– The Federal Reserve in the International Sphere |access-date = October 17, 2018 |archive-date = April 27, 2017 |archive-url = https://web.archive.org/web/20170427062108/https://www.federalreserve.gov/aboutthefed/files/pf_4.pdf |url-status = live }}</ref> and a [[free-floating currency]]. It is also the official currency in several countries and the [[de facto currency|''de facto'' currency]] in many others,<ref>Cohen, Benjamin J. 2006. ''The Future of Money'', [[Princeton University Press]]. {{ISBN|0-691-11666-0}}.</ref><ref>Agar, Charles. 2006. ''Vietnam'', (''[[Frommer's]]''). {{ISBN|0-471-79816-9}}. p. 17: "the dollar is the de facto currency in Cambodia."</ref> with [[Federal Reserve Notes]] (and, in a few cases, U.S. coins) used in circulation.
The [[monetary policy of the United States]] is conducted by the [[Federal Reserve System]], which acts as the nation's [[central bank]]. As of February 10, 2021, currency in circulation amounted to {{US$|2.10 [[trillion]]}}, {{US$|2.05 trillion|long=no}} of which is in Federal Reserve Notes (the remaining {{US$|50 billion|long=no}} is in the form of [[Coins of the United States dollar|coins]] and older-style [[United States Note]]s).<ref>{{cite web|title=How much U.S. currency is in circulation?|url=https://www.federalreserve.gov/faqs/currency_12773.htm|access-date=February 27, 2021|publisher=Federal Reserve|archive-date=November 13, 2021|archive-url=https://web.archive.org/web/20211113151222/https://www.federalreserve.gov/faqs/currency_12773.htm|url-status=live}}</ref> As of September 20, 2023, the Federal Reserve estimated that the total amount of currency in circulation was approximately {{US$|2.33 [[trillion]]}}.<ref>{{Cite web|url=https://www.federalreserve.gov/releases/h41/20230921/|title=Federal Reserve Balance Sheet: Factors Affecting Reserve Balances - H.4.1|date=September 21, 2023|archive-url=https://web.archive.org/web/20231004014016/https://www.federalreserve.gov/releases/h41/20230921/|archive-date=October 4, 2023}}</ref>
==Overview==
===In the Constitution===
[[Article One of the United States Constitution|Article&nbsp;I]], [[Article One of the United States Constitution#Section 8: Powers of Congress|Section&nbsp;8]] of the [[United States Constitution|U.S. Constitution]] provides that [[United States Congress|Congress]] has the power "[t]o [[Coining (mint)|coin money]]."<ref>U.S. Constitution, Article 1, Section 8. [https://www.law.cornell.edu/constitution/articlei#section8 para. 5] {{Webarchive|url=https://web.archive.org/web/20211118233715/https://www.law.cornell.edu/constitution/articlei#section8 |date=November 18, 2021 }}.</ref> Laws implementing this power are currently codified in [[Title 31 of the United States Code|Title 31]] of the [[United States Code|U.S. Code]], under Section 5112, which prescribes the forms in which the United States dollars should be issued.<ref name=":0">''Denominations, specifications, and design of coins''. {{USC|31|5112}}.</ref> These coins are both designated in the section as "[[legal tender]]" in payment of debts.<ref name=":0" /> The [[Sacagawea dollar]] is one example of the [[List of copper alloys|copper alloy]] dollar, in contrast to the [[American Silver Eagle]] which is pure [[silver]]. Section 5112 also provides for the [[Minting coins|minting]] and [[Money creation|issuance]] of other coins, which have values ranging from [[One-cent coin|one cent]] ([[Penny (United States coin)|U.S. Penny]]) to 100 dollars.<ref name=":0" /> These other coins are more fully described in [[Coins of the United States dollar]].
[[Article One of the United States Constitution#Section 9: Limits on Congress|Article I, Section 9]] of the Constitution provides that "a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time",<ref>U.S. Constitution, Article 1, Section 9. [https://www.law.cornell.edu/constitution/articlei#section9 para. 7] {{Webarchive|url=https://web.archive.org/web/20211118233715/https://www.law.cornell.edu/constitution/articlei#section9 |date=November 18, 2021 }}.</ref> which is further specified by Section 331 of Title 31 of the U.S. Code.<ref>''Reports''. {{USC|31|331}}.</ref> The sums of money reported in the "Statements" are currently expressed in U.S. dollars, thus the U.S. dollar may be described as the [[unit of account]] of the United States.<ref>{{cite web|year=2009|title=Financial Report of the United States Government|url=https://www.gao.gov/financial_pdfs/fy2009/09frusg.pdf|access-date=October 17, 2018|publisher=Department of the Treasury|archive-date=November 13, 2018|archive-url=https://web.archive.org/web/20181113005737/https://www.gao.gov/financial_pdfs/fy2009/09frusg.pdf|url-status=dead}}</ref> "Dollar" is one of the first words of Section 9, in which the term refers to the [[Spanish dollar|Spanish milled dollar]], or the coin worth eight [[Spanish real]]es.
=== Coinage Act ===
In 1792, the [[2nd United States Congress|U.S. Congress]] passed the [[Coinage Act of 1792|Coinage Act]], of which Section 9 authorized the production of various coins, including:<ref name=":1">[[United States Congress|U.S. Congress]]. 1792. ''[https://web.archive.org/web/20040407164627/http://nesara.org/files/coinage_act_1792.pdf Coinage Act of 1792]''. [[2nd United States Congress|2nd Congress]], 1st Session. Sec. 9, ch. 16. Retrieved June 6, 2020.</ref>{{Rp|248}}{{blockquote|'''Dollars or Units'''—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one [[grain (unit)|grain]]s and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver.}}Section 20 of the Act designates the United States dollar as the [[currency|unit of currency]] of the United States:<ref name=":1" />{{Rp|250–1}}{{blockquote|[T]he money of account of the United States shall be expressed in dollars, or units...and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regulation.}}
=== Decimal units ===
Unlike the Spanish milled dollar, the [[Continental Congress]] and the Coinage Act prescribed a [[Decimalisation|decimal system]] of units to go with the unit dollar, as follows:<ref name="contcongress1">{{cite journal |editor-last=Fitzpatrick |editor-first=John C. |date=1934 |title=Tuesday, August 8, 1786 |url=http://memory.loc.gov/cgi-bin/query/r?ammem/hlaw:@field(DOCID+@lit(jc0317)) |journal=Journals of the Continental Congress 1774–1789 |volume=XXXI: 1786 |pages=503–505 |access-date=December 5, 2019 |archive-date=May 7, 2021 |archive-url=https://web.archive.org/web/20210507050926/http://memory.loc.gov/cgi-bin/query/r?ammem/hlaw:@field(DOCID+@lit(jc0317)) |url-status=live }}</ref><ref>{{cite journal|date=1845|editor-last=Peters|editor-first=Richard|title=Second Congress. Sess. I. Ch. 16|url=http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=001/llsl001.db&recNum=369|journal=The Public Statutes at Large of the United States of America, Etc. Etc.|volume=1|pages=246–251|access-date=December 5, 2019|archive-date=November 13, 2020|archive-url=https://web.archive.org/web/20201113041153/http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=001%2Fllsl001.db&recNum=369|url-status=live}}</ref> the '''mill''', or one-thousandth of a dollar; the '''cent''', or one-hundredth of a dollar; the '''dime''', or one-tenth of a dollar; and the '''eagle''', or ten dollars. The current relevance of these units:
* Only the [[Cent (currency)|'''cent''']] ('''¢''') is used as everyday division of the dollar.
* The [[Dime (United States coin)|'''dime''']] is used solely as the name of the [[Dime (United States coin)|coin]] with the value of 10 cents.
* The [[mill (currency)|'''mill''']] ('''₥''') is relatively unknown, but before the mid-20th century was familiarly used in matters of [[Sales taxes in the United States|sales taxes]], as well as [[Gasoline and diesel usage and pricing|gasoline prices]], which are usually in the form of $ΧΧ.ΧΧ9 per [[gallon]] (e.g., $3.599, commonly written as ${{frac|3.59|9|10}}).<ref>{{cite web|last=Langland|first=Connie|date=May 27, 2015|title=What is a millage rate and how does it affect school funding?|url=https://whyy.org/articles/what-is-a-millage-rate-and-how-does-it-affect-school-funding/|access-date=December 5, 2019|website=WHYY|publisher=PBS and NPR|archive-date=March 7, 2021|archive-url=https://web.archive.org/web/20210307202059/https://whyy.org/articles/what-is-a-millage-rate-and-how-does-it-affect-school-funding/|url-status=live}}</ref><ref name=":2" />
* The [[eagle (United States coin)|'''eagle''']] is also largely unknown to the general public.<ref name=":2">{{cite web|date=September 26, 2018|title=Mills Currency|url=https://pastandpresent.com/2018/09/26/mills-currency/|access-date=December 5, 2019|website=Past & Present|publisher=Stamp and Coin Place Blog|archive-date=May 3, 2021|archive-url=https://web.archive.org/web/20210503090930/https://pastandpresent.com/2018/09/26/mills-currency/|url-status=dead}}</ref> This term was used in the ''Coinage Act of 1792'' for the denomination of ten dollars, and subsequently was used in naming gold coins.
The [[Spanish dollar|Spanish peso or dollar]] was historically divided into eight [[Spanish real|'''reales''']] (colloquially, ''bits'') – hence ''pieces of eight''. Americans also learned counting in non-decimal ''bits'' of {{frac|12|1|2}} cents before 1857 when Mexican ''bits'' were more frequently encountered than American cents; in fact this practice survived in [[New York Stock Exchange]] quotations until 2001.<ref name="2bits">{{Cite web|url=https://www.almanac.com/fact/how-much-is-two-bits-and-where|title=How much is "two bits" and where did the phrase|access-date=June 9, 2021|archive-date=August 14, 2021|archive-url=https://web.archive.org/web/20210814042353/https://www.almanac.com/fact/how-much-is-two-bits-and-where|url-status=live}}</ref><ref>{{Cite web|url=https://www.investopedia.com/terms/d/decimal-trading.asp|title=Decimal Trading Definition and History|access-date=June 10, 2021|archive-date=November 18, 2021|archive-url=https://web.archive.org/web/20211118011525/https://www.investopedia.com/terms/d/decimal-trading.asp|url-status=live}}</ref>
In 1854, [[Secretary of the Treasury]] [[James Guthrie (American politician)|James Guthrie]] proposed creating $100, $50, and $25 gold coins, to be referred to as a ''[[Union (United States coin)|union]]'', ''[[half union]]'', and ''quarter union'', respectively,<ref>Mehl, B. Max. "United States $50.00 Gold Pieces, 1877", in ''Star Rare Coins Encyclopedia and Premium Catalogue'' (20th edition, 1921)</ref> thus implying a denomination of 1 Union = $100. However, no such coins were ever struck, and only patterns for the $50 half union exist.
When currently issued in circulating form, denominations less than or equal to a dollar are emitted as [[Coins of the United States dollar|U.S. coins]], while denominations greater than or equal to a dollar are emitted as [[Federal Reserve Note]]s, disregarding these special cases:
* Gold coins issued for [[circulation (currency)|circulation]] until the 1930s, up to the value of $20 (known as the ''[[double eagle]]'')
* Bullion or commemorative [[Gold coin|gold]], [[Silver coin|silver]], [[Platinum coin|platinum]], and [[palladium coin]]s valued up to $100 as legal tender (though worth far more as [[bullion]]).
* Civil War paper currency issue in denominations below $1, i.e. fractional currency, sometimes pejoratively referred to as ''[[shinplaster]]s''.
===Etymology===
{{Further|Dollar}}
In the 16th century, Count [[Hieronymus Schlick]] of [[Bohemia]] began minting coins known as ''joachimstalers'', named for [[Jáchymov|Joachimstal]], the valley in which the silver was mined. In turn, the valley's name is titled after [[Joachim|Saint Joachim]], whereby ''thal'' or ''tal'', a cognate of the English word {{Wikt-lang|en|dale}}, is [[German language|German]] for 'valley.'<ref name="NatGeo">"Ask US." ''[[National Geographic]]''. June 2002. p. 1.</ref> The ''joachimstaler'' was later shortened to the German ''[[Thaler|taler]]'', a word that eventually found its way into many languages, including:<ref name="NatGeo" />
''tolar'' ([[Czech language|Czech]], [[Slovak language|Slovak]] and [[Slovenian language|Slovenian]]); ''daler'' ([[Danish language|Danish]] and [[Swedish language|Swedish]]); ''talar'' ([[Polish language|Polish]]);
''dalar'' and ''daler'' ([[Norwegian language|Norwegian]]); ''daler'' or ''daalder'' ([[Dutch language|Dutch]]);
''[[Ethiopian talari|talari]]'' ([[Languages of Ethiopia|Ethiopian]]);
''tallér'' ([[Hungarian language|Hungarian]]);
''tallero'' ([[Italian language|Italian]]);
''دولار'' ([[Arabic language|Arabic]]); and ''[[dollar]]'' ([[English language|English]]).
Though the [[Dutch people|Dutch]] pioneered in modern-day [[New York (state)|New York]] in the 17th century the use and the counting of money in silver dollars in the form of German-Dutch ''[[reichsthaler]]s'' and native Dutch ''[[leeuwendaalder]]s'' ('lion dollars'), it was the ubiquitous [[Spanish America]]n [[Spanish dollar|eight-real coin]] which became exclusively known as the ''dollar'' since the 18th century.<ref>There is no solid reference on the desirability of liondollars in North America and on 1:1 parity with heavier dollars. A dollar worth $0.80 Spanish is not cheap if priced at $0.50 http://coins.lakdiva.org/netherlands/1644_wes_lion_daalder_ag.html {{Webarchive|url=https://web.archive.org/web/20130205163340/http://coins.lakdiva.org/netherlands/1644_wes_lion_daalder_ag.html |date=February 5, 2013 }} https://coins.nd.edu/ColCoin/ColCoinIntros/Lion-Dollar.intro.html {{Webarchive|url=https://web.archive.org/web/20180710214930/https://coins.nd.edu/ColCoin/ColCoinIntros/Lion-Dollar.intro.html |date=July 10, 2018 }}</ref>
===Nicknames===
{{see also|Slang terms for money#United States}}
The [[colloquialism]] ''[[Wikt:buck|'''buck(s)''']]'' (much like the British ''quid'' for the [[pound sterling]]) is often used to refer to dollars of various nations, including the U.S. dollar. This term, dating to the 18th century, may have originated with the colonial [[leather]] trade, or it may also have originated from a [[poker]] term.<ref>{{cite encyclopedia |title=Buck |dictionary=Online Etymology Dictionary |url=https://www.etymonline.com/search?q=buck |access-date=October 17, 2018 }}</ref>
[[United States Note|'''''Greenback''''']] is another nickname, originally applied specifically to the 19th-century [[Demand Note]] dollars, which were printed black and green on the backside, created by [[Abraham Lincoln]] to finance the [[Union (American Civil War)|North]] for the [[American Civil War|Civil War]].<ref>{{cite web |title=Paper Money Glossary |publisher=Littleton Coin Company |url=https://www.littletoncoin.com/shop/Glossaries-Paper-Money |access-date=October 17, 2018 |archive-date=October 18, 2018 |archive-url=https://web.archive.org/web/20181018043137/https://www.littletoncoin.com/shop/Glossaries-Paper-Money |url-status=dead }}</ref> It is still used to refer to the U.S. dollar (but not to the dollars of other countries). The term ''greenback'' is also used by the financial press in other countries, such as
[[Australia]],<ref name=BI>{{cite web|url=https://www.businessinsider.com.au/fx-currency-aud-australia-dollar-fed-trade-war-china-2019-6|title=The Australian dollar is grinding higher as expectations for rate cuts from the US Federal Reserve build|first=David|last=Scutt|website=Business Insider|date=June 3, 2019|access-date=August 7, 2019|archive-date=August 7, 2019|archive-url=https://web.archive.org/web/20190807004722/https://www.businessinsider.com.au/fx-currency-aud-australia-dollar-fed-trade-war-china-2019-6|url-status=dead}}</ref> [[New Zealand]],<ref name=MW>{{cite web|website=MarketWatch|url=https://www.marketwatch.com/story/dollar-higher-ahead-of-data-new-zealand-currency-at-lowest-since-2016-2018-08-09|title=New Zealand dollar leads G-10 losers as greenback gains strength|first=Anneken|last=Tappe|date=August 9, 2018|access-date=August 7, 2019|archive-date=August 7, 2019|archive-url=https://web.archive.org/web/20190807004722/https://www.marketwatch.com/story/dollar-higher-ahead-of-data-new-zealand-currency-at-lowest-since-2016-2018-08-09|url-status=live}}</ref> [[South Africa]],<ref name=Reuters>{{cite news |website=Reuters|url=https://www.reuters.com/article/idUKL5N22F4S0/|title=South Africa's rand firms against greenback, stocks rise|access-date=August 7, 2019}}</ref> and [[India]].<ref name=BT>{{cite web|url=https://www.businesstoday.in/latest/story/why-rupee-is-once-again-under-pressure-191471-2019-04-22|website=Business Today|title=Why rupee is once again under pressure|date=April 22, 2019|access-date=August 7, 2019}}</ref>
Other well-known names of the dollar as a whole in denominations include '''''greenmail''''', '''''green''''', and '''''dead presidents''''', the latter of which referring to the deceased presidents pictured on most bills. Dollars in general have also been known as '''''bones''''' (e.g. "twenty bones" = $20). The newer designs, with portraits displayed in the main body of the obverse (rather than in [[Cameo (carving)|cameo]] insets), upon paper color-coded by denomination, are sometimes referred to as '''''bigface''''' notes or '''''[[Monopoly (game)|Monopoly]] money'''''.{{citation needed|date=September 2022}}
'''''[[Piastre]]''''' was the original French word for the U.S. dollar, used for example in the French text of the [[Louisiana Purchase]]. Though the U.S. dollar is called ''dollar'' in Modern French, the term ''piastre'' is still used among the speakers of [[Cajun French]] and [[New England French]], as well as speakers in [[Haiti]] and other [[French West Indies#French Caribbean|French-speaking Caribbean]] islands.
Nicknames specific to denomination:
* The [[Quarter (United States coin)|quarter dollar]] coin is known as ''two bits'', alluding the dollar's origins as the "piece of eight" (bits or ''reales'').<ref name="2bits" />
* The [[United States one-dollar bill|$1 bill]] is nicknamed ''buck'' or ''single''.
* The infrequently-used [[United States two-dollar bill|$2 bill]] is sometimes called ''deuce'', ''Tom'', or ''Jefferson'' (after [[Thomas Jefferson]]).
* The [[United States five-dollar bill|$5 bill]] is sometimes called ''Lincoln'' (after [[Abraham Lincoln]]), ''fin'', ''fiver'', or ''five-spot''.
* The [[United States ten-dollar bill|$10 bill]] is sometimes called ''sawbuck'', ''ten-spot'', or ''Hamilton'' (after [[Alexander Hamilton]]).
* The [[United States twenty-dollar bill|$20 bill]] is sometimes called ''double sawbuck'', ''Jackson'' (after [[Andrew Jackson]]), or ''[[double eagle]]''.
* The [[United States fifty-dollar bill|$50 bill]] is sometimes called a ''yardstick'', or a ''grant'', after President [[Ulysses S. Grant]].
* The [[United States one-hundred-dollar bill|$100 bill]] is called ''Benjamin'', ''Benji'', ''Ben'', or ''Franklin'', referring to its portrait of [[Benjamin Franklin]]. Other nicknames include ''C-note'' (C being the [[Roman numerals|Roman numeral]] for 100), ''century note'', or ''bill'' (e.g. ''two bills'' = $200).
* Amounts or multiples of $1,000 are sometimes called ''[[1000 (number)#Notation|grand]]'' in colloquial speech, abbreviated in written form to ''G'', ''K'', or ''k'' (from [[kilo-|''kilo'']]; e.g. $10k = $10,000). Likewise, a ''large'' or ''stack'' can also refer to a multiple of $1,000 (e.g. "fifty large" = $50,000).
===Dollar sign===
{{Main|Dollar sign}}
[[File:Potosi Real.jpg|thumb|upright=0.9|[[Spanish real|Spanish silver eight-real]] or [[peso]] of 1768]]
The symbol {{Dollar sign|US|lk=on}}, usually written before the numerical amount, is used for the U.S. dollar (as well as for many other currencies). The sign was perhaps the result of a late 18th-century evolution of the [[scribal abbreviation]] '''''p<sup>s</sup>''''' for the [[peso]], the common name for the [[Spanish dollars]] that were in wide circulation in the [[New World]] from the 16th to the 19th centuries. The '''''p''''' and the '''''s''''' eventually came to be written over each other giving rise to '''''$'''''.<ref>[[Florian Cajori|Cajori, Florian]] ([1929]1993). ''[https://books.google.com/books?id=7juWmvQSTvwC&pg=RA1-PA22#PRA1-PA22,M1 A History of Mathematical Notations]'' (Vol. 2). New York: Dover, 15–29. {{ISBN|0-486-67766-4}}</ref><ref>{{Cite journal |at=p. 198 and note 2 on p. 198|jstor = 2506275|title = The First American Mint|journal = The Hispanic American Historical Review|volume = 11|issue = 2|last1 = Aiton|first1 = Arthur S.|last2 = Wheeler|first2 = Benjamin W.|year = 1931|doi = 10.1215/00182168-11.2.198|doi-access = free |issn=0018-2168 }}</ref><ref>{{cite book | last = Nussbaum | first = Arthur | author-link = Arthur Nussbaum | title = A History of the Dollar | url = https://archive.org/details/historyofdollar0000nuss | url-access = registration | publisher = Columbia University Press | year = 1957 | location = New York | page = [https://archive.org/details/historyofdollar0000nuss/page/56 56] |quote= The dollar sign, $, is connected with the peso, contrary to popular belief, which considers it to be an abbreviation of 'U.S.' The two parallel lines represented one of the many abbreviations of 'P,' and the 'S' indicated the plural. The abbreviation '$.' was also used for the peso, and is still used in Argentina.}}</ref><ref>{{cite web|url=https://www.bep.gov/resources/faqs.html|title=U.S. Bureau of Engraving and Printing – FAQs|website=www.bep.gov|access-date=October 17, 2018|archive-date=October 18, 2018|archive-url=https://web.archive.org/web/20181018003102/https://www.bep.gov/resources/faqs.html|url-status=dead}}</ref>
Another popular explanation is that it is derived from the [[Pillars of Hercules]] on the [[Coat of arms of Spain|Spanish coat of arms]] of the [[Spanish dollar]]. These [[Pillars of Hercules]] on the silver Spanish dollar coins take the form of two vertical bars ('''||''') and a swinging cloth band in the shape of an '''''S'''''.{{citation needed|date=January 2023}}
Yet another explanation suggests that the dollar sign was formed from the capital letters '''''U''''' and '''''S''''' written or printed one on top of the other. This theory, popularized by novelist [[Ayn Rand]] in ''[[Atlas Shrugged]]'',<ref>Rand, Ayn. [1957] 1992. ''[[Atlas Shrugged]]''. [[Signet Press|Signet]]. p. 628.</ref> does not consider the fact that the symbol was already in use before the formation of the United States.<ref>{{cite book | last = James | first = James Alton | title = Oliver Pollock: The Life and Times of an Unknown Patriot | publisher = Books for Libraries Press | year = 1970 | orig-year = 1937 | location = Freeport | page = 356 |url=https://books.google.com/books?id=kht_DEllNccC | isbn = 978-0-8369-5527-9}}</ref>
==History==
{{See also|History of the United States dollar}}
===Origins: the Spanish dollar===
The U.S. dollar was introduced at par with the Spanish-American [[Spanish dollar|silver dollar]] (or ''Spanish peso'', ''Spanish milled dollar'', ''eight-real coin'', ''piece-of-eight''). The latter was produced from the rich silver mine output of [[Spanish America]], was minted in [[Mexico City]], [[Potosí]] (Bolivia), [[Lima]] (Peru), and elsewhere, and was in wide circulation throughout the Americas, Asia, and Europe from the 16th to the 19th centuries. The minting of machine-milled Spanish dollars since 1732 boosted its worldwide reputation as a trade coin and positioned it to be the model for the new currency of the [[United States]].{{citation needed|date=November 2023}}
Even after the [[United States Mint]] commenced issuing coins in 1792, locally minted ''dollars'' and ''cents'' were less abundant in circulation than [[Spanish America]]n ''pesos'' and ''reales''; hence Spanish, Mexican, and American dollars all remained legal tender in the United States until the [[Coinage Act of 1857]]. In particular, colonists' familiarity with the Spanish two-''real quarter peso'' was the reason for issuing a quasi-decimal [[Quarter (United States coin)|25-cent quarter dollar coin]] rather than a 20-cent coin.{{citation needed|date=November 2023}}
For the relationship between the [[Spanish dollar]] and the individual state colonial currencies, see [[Connecticut pound]], [[Delaware pound]], [[Georgia pound]], [[Maryland pound]], [[Massachusetts pound]], [[New Hampshire pound]], [[New Jersey pound]], [[New York pound]], [[North Carolina pound]], [[Pennsylvania pound]], [[Rhode Island pound]], [[South Carolina pound]], and [[Virginia pound]].{{citation needed|date=November 2023}}
===Coinage Act of 1792===
{{See also|Coinage Act of 1792}}
[[File:Alexander Hamilton portrait by John Trumbull 1806.jpg|thumb|upright|[[Alexander Hamilton]] finalized the details of the 1792 Coinage Act and the establishment of the U.S. Mint.]]
On July 6, 1785, the [[Continental Congress]] resolved that the money unit of the United States, the dollar, would contain 375.64 [[Grain (unit)|grains]] of fine silver; on August 8, 1786, the Continental Congress continued that definition and further resolved that the money of account, corresponding with the division of coins, would proceed in a [[Decimalisation|decimal ratio]], with the sub-units being mills at 0.001 of a dollar, cents at 0.010 of a dollar, and dimes at 0.100 of a dollar.<ref name="contcongress1"/>
After the adoption of the [[United States Constitution]], the U.S. dollar was defined by the [[Coinage Act of 1792]]. It specified a "dollar" based on the [[Spanish dollar|Spanish milled dollar]] to contain {{frac|371|4|16}} [[grain (unit)|grain]]s of fine silver, or {{convert|416.0|gr}} of "standard silver" of fineness 371.25/416 = 89.24%; as well as an "eagle" to contain {{frac|247|4|8}} grains of fine gold, or {{convert|270.0|gr}} of 22 [[karat]] or 91.67% fine gold.<ref>{{cite web|last=Mint|first=U.S.|title=Coinage Act of 1792|date=April 6, 2017|url=https://www.usmint.gov/learn/history/historical-documents/coinage-act-of-april-2-1792|publisher=U.S. treasury|access-date=October 17, 2018|archive-date=November 8, 2020|archive-url=https://web.archive.org/web/20201108001121/https://www.usmint.gov/learn/history/historical-documents/coinage-act-of-april-2-1792|url-status=live}}</ref> [[Alexander Hamilton]] arrived at these numbers based on a treasury assay of the average fine silver content of a selection of worn [[Spanish dollar]]s, which came out to be 371 grains. Combined with the prevailing gold-silver ratio of 15, the standard for gold was calculated at 371/15 = 24.73 grains fine gold or 26.98 grains 22K gold. Rounding the latter to 27.0 grains finalized the dollar's standard to 24.75 grains of fine gold or 24.75*15 = 371.25 grains = 24.0566 grams = 0.7735 troy ounces of fine silver.
The same coinage act also set the value of an eagle at 10 dollars, and the dollar at {{frac|1|10}} eagle. It called for silver coins in denominations of 1, {{frac|1|2}}, {{frac|1|4}}, {{frac|1|10}}, and {{frac|1|20}} dollar, as well as gold coins in denominations of 1, {{frac|1|2}} and {{frac|1|4}} eagle. The value of gold or silver contained in the dollar was then converted into relative value in the economy for the buying and selling of goods. This allowed the value of things to remain fairly constant over time, except for the influx and outflux of gold and silver in the nation's economy.<ref>{{cite web|url = https://www.ecominoes.com/2013/01/the-definitive-inflation-chart.html|archive-url=https://web.archive.org/web/20181019050731/https://www.ecominoes.com/2013/01/the-definitive-inflation-chart.html|archive-date=October 19, 2018|url-status = live|website = Ecominoes|title = The Definitive Inflation Chart |date =January 7, 2013|first = Seth|last = Mason}}.</ref>
Though a [[Spanish dollar]] freshly minted after 1772 theoretically contained 417.7 grains of silver of fineness 130/144 (or 377.1 grains fine silver), reliable assays of the period in fact confirmed a fine silver content of {{convert|370.95|gr}} for the average Spanish dollar in circulation.<ref>{{Cite journal |url= https://www.jstor.org/stable/1834139 |jstor= 1834139 |last1= Sumner |first1= W. G.|title = The Spanish Dollar and the Colonial Shilling |journal= The American Historical Review |year= 1898 |volume= 3 |issue= 4 |pages= 607–619 |doi= 10.2307/1834139 |access-date= June 7, 2021 |archive-date= April 9, 2022 |archive-url= https://web.archive.org/web/20220409153556/https://www.jstor.org/stable/1834139 |url-status= live}}</ref>
The new U.S. silver dollar of {{convert|371.25|gr}} therefore compared favorably and was received at par with the Spanish dollar for foreign payments, and after 1803 the [[United States Mint]] had to suspend making this coin out of its limited resources since it failed to stay in domestic circulation. It was only after Mexican independence in 1821 when their peso's fine silver content of 377.1 grains was firmly upheld, which the U.S. later had to compete with using a heavier {{convert|378.0|gr}} [[Trade dollar (United States coin)|Trade dollar coin]].
===Design===
The early currency of the United States did not exhibit faces of presidents, as is the custom now;<ref>{{cite web|url=https://www.oanda.com/currency/iso-currency-codes/USD|title=United States Dollar|publisher=OANDA|access-date=October 17, 2018|archive-date=October 18, 2018|archive-url=https://web.archive.org/web/20181018003057/https://www.oanda.com/currency/iso-currency-codes/USD|url-status=live}}</ref> although today, by law, only the portrait of a deceased individual may appear on United States currency.<ref>{{cite web|url=https://www.law.cornell.edu/uscode/text/31/5114|title=Engraving and printing currency and security documents:Article b|publisher=Legal Information Institute|access-date=December 19, 2013|archive-date=December 20, 2013|archive-url=https://web.archive.org/web/20131220073118/http://www.law.cornell.edu/uscode/text/31/5114|url-status=live}}</ref> In fact, the newly formed government was against having portraits of leaders on the currency, a practice compared to the policies of European monarchs.<ref>{{cite magazine|url=http://mentalfloss.com/article/28312/money-everything-you-ever-wanted-know-about-coin-portraits|title=On the Money: Everything You Ever Wanted to Know About Coin Portraits|author=Matt Soniak|magazine=Mental Floss|date=July 22, 2011|access-date=October 17, 2018}}</ref> The currency as we know it today did not get the faces they currently have until after the early 20th century; before that "heads" side of coinage used profile faces and striding, seated, and standing figures from Greek and Roman mythology and composite Native Americans. The last coins to be converted to profiles of historic Americans were the dime (1946), the half Dollar (1948), and the Dollar (1971).
===Continental currency===
{{See also|Continental currency}}
[[File:Continental Currency One-Third-Dollar 17-Feb-76 obv.jpg|thumb|upright=0.9|Continental one third dollar bill (obverse)]]
After the [[American Revolution]], the [[Thirteen Colonies]] became [[sovereignty|independent]]. Freed from British monetary regulations, they each issued [[£sd]] paper money to pay for military expenses. The [[Continental Congress]] also began issuing "Continental Currency" denominated in Spanish dollars. For its value relative to states' currencies, see [[Early American currency#Continental currency|Early American currency]].
Continental currency [[depreciation (currency)|depreciated]] badly during the war, giving rise to the famous phrase "not worth a continental".<ref>{{cite book|last1=Newman|first1=Eric P.|title=The Early Paper Money of America|date=1990|publisher=Krause Publications|location=Iola, Wisconsin|isbn=0-87341-120-X|page=17|edition=3}}</ref> A primary problem was that monetary policy was not coordinated between Congress and the states, which continued to issue bills of credit. Additionally, neither Congress nor the governments of the several states had the will or the means to retire the bills from circulation through taxation or the sale of bonds.<ref>{{cite book|last1=Wright|first1=Robert E.|title=One Nation Under Debt: Hamilton, Jefferson, and the History of What We Owe|date=2008|publisher=McGraw-Hill|location=New York, New York|isbn=978-0-07-154393-4|pages=50–52}}</ref> The currency was ultimately replaced by the silver dollar at the rate of 1 silver dollar to 1000 continental dollars. This resulted in the clause "No state shall... make anything but gold and silver coin a tender in payment of debts" being written into the [[Article One of the United States Constitution#Section 10: Limits on the States|United States Constitution article 1, section 10]].
===Silver and gold standards, 19th century===
From implementation of the 1792 [[Mint Act]] to the 1900 implementation of the [[gold standard]], the dollar was on a [[bimetallism|bimetallic]] silver-and-gold standard, defined as either 371.25 [[grain (unit)|grains]] (24.056 g) of fine silver or 24.75 grains of fine gold (gold-silver ratio 15).
Subsequent to the [[Coinage Act of 1834]] the dollar's fine gold equivalent was revised to 23.2 grains; it was slightly adjusted to {{convert|23.22|gr}} in 1837 (gold-silver ratio ~16). The same act also resolved the difficulty in minting the "standard silver" of 89.24% fineness by revising the dollar's alloy to 412.5 grains, 90% silver, still containing 371.25 grains fine silver. Gold was also revised to 90% fineness: 25.8 grains gross, 23.22 grains fine gold.
Following the rise in the price of silver during the [[California Gold Rush]] and the disappearance of circulating silver coins, the [[Coinage Act of 1853]] reduced the standard for silver coins less than $1 from 412.5 grains to {{convert|384|gr}}, 90% silver per 100 cents (slightly revised to 25.0 g, 90% silver in 1873). The Act also limited the [[free silver]] right of individuals to convert [[bullion]] into only one coin, the silver dollar of 412.5 grains; smaller coins of lower standard can only be produced by the [[United States Mint]] using its own bullion.
Summary and [[Coins of the United States dollar|links to coins]] issued in the 19th century:
* In base metal: [[Half cent (United States coin)|1/2 cent]], [[Penny (United States coin)|1 cent]], [[Nickel (United States coin)|5 cents]].
* In silver: [[half dime]], [[Dime (United States coin)|dime]], [[Quarter (United States coin)|quarter dollar]], [[Half dollar (United States coin)|half dollar]], [[Dollar coin (United States)|silver dollar]].
* In gold: [[Gold dollar|gold $1]], [[Quarter eagle|$2.50 quarter eagle]], [[Half eagle|$5 half eagle]], [[Eagle (United States coin)|$10 eagle]], [[Double eagle|$20 double eagle]].
* Less common denominations: [[Two-cent piece (United States coin)|bronze 2 cents]], [[Three-cent nickel|nickel 3 cents]], [[Three-cent silver|silver 3 cents]], [[Twenty-cent piece (United States coin)|silver 20 cents]], [[Three-dollar piece|gold $3]].
===Note issues, 19th century===
[[File:One US dollar 1917.jpg|thumb|upright=0.9|Series of 1917 [[United States one-dollar bill|$1 United States Note]]]]
In order to finance the [[War of 1812]], Congress authorized the issuance of [[Treasury Note (19th century)|Treasury Note]]s, interest-bearing short-term debt that could be used to pay public dues. While they were intended to serve as debt, they did function "to a limited extent" as money. Treasury Notes were again printed to help resolve the reduction in public revenues resulting from the [[Panic of 1837]] and the [[Panic of 1857]], as well as to help finance the [[Mexican–American War]] and the [[American Civil War|Civil War]].
Paper money was issued again in 1862 without the backing of precious metals due to the [[American Civil War|Civil War]]. In addition to Treasury Notes, Congress in 1861 authorized the Treasury to borrow $50&nbsp;million in the form of [[Demand Notes]], which did not bear interest but could be redeemed on demand for precious metals. However, by December 1861, the [[Union (American Civil War)|Union]] government's supply of specie was outstripped by demand for redemption and they were forced to suspend redemption temporarily. In February 1862 Congress passed the [[Legal Tender Cases|''Legal Tender Act of 1862'']], issuing [[United States Notes]], which were not redeemable on demand and bore no interest, but were [[legal tender]], meaning that creditors had to accept them at face value for any payment except for public debts and import tariffs. However, silver and gold coins continued to be issued, resulting in the depreciation of the newly printed notes through [[Gresham's law]]. In 1869, Supreme Court ruled in [[Hepburn v. Griswold]] that Congress could not require creditors to accept United States Notes, but overturned that ruling the next year in the [[Legal Tender Cases]]. In 1875, Congress passed the ''[[Specie Payment Resumption Act]]'', requiring the Treasury to allow U.S. Notes to be redeemed for gold after January 1, 1879.
===Gold standard, 20th century===
[[File:NNC-US-1907-G$20-Saint Gaudens (Roman, high relief).jpg|thumb|Gold [[double eagle]] ($20 coin), 1907]]
Though the dollar came under the [[gold standard]] ''de jure'' only after 1900, the [[bimetallism|bimetallic era]] was ended ''de facto'' when the [[Coinage Act of 1873]] suspended the minting of the standard [[Dollar coin (United States)|silver dollar]] of {{convert|412.5|gr|g ozt|lk=in|adj=pre|Troy|disp=x| {{=}} |}}, the only fully legal tender coin that individuals could convert bullion into in unlimited (or [[Free silver]]) quantities,{{efn|Silver bullion can be converted in unlimited quantities of Trade dollars of 420 grains, but these were meant for export and had legal tender limits in the US. See [[Trade dollar (United States coin)]].}} and right at the onset of the [[silver rush]] from the [[Comstock Lode]] in the 1870s. This was the so-called "Crime of '73".
The ''[[Gold Standard Act]]'' of 1900 repealed the U.S. dollar's historic link to silver and defined it solely as {{convert|23.22|gr}} of fine gold (or $20.67 per [[troy ounce]] of 480 grains). In 1933, gold coins were confiscated by [[Executive Order 6102]] under [[Franklin D. Roosevelt]], and in 1934 the standard was changed to $35 per troy ounce fine gold, or {{convert|13.71|gr}} per dollar.
After 1968 a series of revisions to the gold peg was implemented, culminating in the [[Nixon Shock]] of August 15, 1971, which suddenly ended the convertibility of dollars to gold. The U.S. dollar has since floated freely on the [[foreign exchange market]]s.{{Citation needed|date=May 2023}}
===Federal Reserve Notes, 20th century to present===
{{See also|Federal Reserve Note}}
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| caption1 = Obverse of a rare 1934 $500 Federal Reserve Note, featuring a portrait of President [[William McKinley]]
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| caption2 = Reverse of a $500 Federal Reserve Note
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Congress continued to issue paper money after the Civil War, the latest of which is the [[Federal Reserve Note]] that was authorized by the [[Federal Reserve Act of 1913]]. Since the discontinuation of all other types of notes (Gold Certificates in 1933, Silver Certificates in 1963, and United States Notes in 1971), U.S. dollar notes have since been issued exclusively as [[Federal Reserve Note]]s.
===Emergence as reserve currency===
{{Main|International use of the U.S. dollar}}
[[File:WhiteandKeynes.jpg|thumb|upright|[[John Maynard Keynes]] (right) and [[Harry Dexter White]] at the inaugural meeting of the [[International Monetary Fund]] in 1946. They were instrumental in drafting the provisions of the post-war global financial system.]]
The U.S. dollar first emerged as an important international [[reserve currency]] in the 1920s, displacing the British [[pound sterling]] as it emerged from the [[First World War]] relatively unscathed and since the United States was a significant recipient of wartime gold inflows. After the United States emerged as an even stronger global [[superpower]] during the [[Second World War]], the [[Bretton Woods Agreement]] of 1944 established the U.S. dollar as the world's primary reserve currency and the only post-war currency linked to gold. Despite all links to gold being severed in 1971, the dollar continues to be the world's foremost reserve currency for international trade to this day.
The Bretton Woods Agreement of 1944 also defined the post-World War II monetary order and relations among modern-day [[United Nations|independent states]], by setting up a system of rules, institutions, and procedures to regulate the [[international monetary system]]. The agreement founded the [[International Monetary Fund]] and other institutions of the modern-day [[World Bank Group]], establishing the infrastructure for conducting international payments and accessing the global capital markets using the U.S. dollar.
The [[monetary policy of the United States]] is conducted by the [[Federal Reserve System]], which acts as the nation's [[central bank]]. It was founded in 1913 under the [[Federal Reserve Act]] in order to furnish an elastic currency for the United States and to supervise its banking system, particularly in the aftermath of the [[Panic of 1907]].
For most of the post-war period, the [[U.S. government]] has financed its own spending by borrowing heavily from the dollar-lubricated global capital markets, in debts denominated in its own currency and at minimal interest rates. This ability to borrow heavily without facing a significant [[balance of payments crisis]] has been described as the [[United States]]'s [[exorbitant privilege]].
==Coins==
{{Main|Coins of the United States dollar}}
The [[United States Mint]] has issued legal tender coins every year from 1792 to the present. From 1934 to the present, the only denominations produced for circulation have been the familiar penny, nickel, dime, quarter, half dollar, and dollar.
{| class="wikitable sortable"
|-
! scope="col" | Denomination
! scope="col" | Common name
! scope="col" | Obverse
! scope="col" | Reverse
! scope="col" | Obverse portrait and design date
! scope="col" | Reverse motif and design date
! scope="col" | Weight
! scope="col" | Diameter
! scope="col" | Material
! scope="col" | Edge
! scope="col" | Circulation
|-
! scope="row" | [[Penny (United States coin)|Cent]]<br>1¢
| penny
|align="center"| [[File:US One Cent Obv.png|48px]]
|align="center"| [[File:US_union_shield_penny_reverse.png|48px]]
| [[Abraham Lincoln]] (1909)
| Union Shield (2010)
| {{convert|2.5|g|oz|3|abbr=on|disp=br()}}
| {{convert|0.75|in|mm|2|abbr=on|disp=br()}}
| 97.5%&nbsp;[[Zinc|Zn]] covered by 2.5%&nbsp;[[Copper|Cu]]
| Plain
| Wide
|-
! scope="row" | [[Nickel (United States coin)|Five cents]]<br>5¢
| nickel
|align="center"| [[File:Jefferson-Nickel-Unc-Obv.jpg|53px]]
|align="center"| [[File:US Nickel 2013 Rev.png|53px]]
| [[Thomas Jefferson]] (2006)
| [[Monticello]] (1938)
| {{convert|5.0|g|oz|3|abbr=on|disp=br()}}
| {{convert|0.835|in|mm|2|abbr=on|disp=br()}}
| 75%&nbsp;Cu<br>25%&nbsp;[[Nickel|Ni]]
| Plain
| Wide
|-
! scope="row" | [[Dime (United States coin)|Ten cents]]<br>10¢
| dime
|align="center"| [[File:Dime Obverse 13.png|45px]]
|align="center"| [[File:Dime Reverse 13.png|45px]]
| [[Franklin D. Roosevelt]] (1946)
| [[Olive branch]], [[torch]], and [[Oak|oak branch]] (1946)
| {{convert|0.08|oz|g|3|abbr=on|disp=br()|order=flip}}
| {{convert|0.705|in|mm|2|abbr=on|disp=br()}}
| 91.67%&nbsp;Cu<br>8.33%&nbsp;Ni
| 118 reeds
| Wide
|-
! scope="row" | [[Quarter (United States coin)|Quarter dollar]]<br>25¢
| quarter
|align="center"| [[File:2021-P US Quarter Obverse.jpg|61px]]
|align="center"| [[File:Quarter new.jpg|61px]]
| [[George Washington]] (1932)
| [[American Women quarters|Various]] (5 designs per year)
| {{convert|0.2|oz|g|2|abbr=on|disp=br()|order=flip}}
| {{convert|0.955|in|mm|2|abbr=on|disp=br()}}
| 91.67%&nbsp;Cu<br>8.33%&nbsp;Ni
| 119 reeds
| Wide
|-
! scope="row" | [[Half dollar (United States coin)|Half dollar]]<br>50¢
| half dollar
|align="center"| [[File:US Half Dollar Obverse 2015.png|77px]]
|align="center"| [[File:US 50 Cent Rev.png|77px]]
| [[John F. Kennedy]] (1964)
| [[Seal of the President of the United States|Presidential Seal]] (1964)
| {{convert|0.4|oz|g|2|abbr=on|disp=br()|order=flip}}
| {{convert|1.205|in|mm|2|abbr=on|disp=br()}}
| 91.67%&nbsp;Cu<br>8.33%&nbsp;Ni
| 150 reeds
| Limited
|-
! scope="row" | [[Dollar coin (United States)|Dollar coin]]<br>$1
| dollar coin, golden dollar
|align="center"| [[File:Sacagawea_dollar_obverse.png|66px]]
|align="center"| [[File:2003 Sacagawea Rev.png|66px]]
| [[Sacagawea]]
(2000)
| [[American Innovation dollars|Various]] (4 designs per year)
| {{convert|8.10|g|oz|abbr=on|disp=br()}}
| {{convert|26.50|mm|in|3|abbr=on|disp=br()|order=flip}}
| 88.5%&nbsp;Cu<br>6%&nbsp;Zn<br>3.5%&nbsp;[[manganese|Mn]]<br>2%&nbsp;Ni
| Plain 2000–2006<br>Lettered 2007–Present
| Limited
|-
|colspan="11"|{{Standard coin table notice|standard_scale=Y|BrE=Y}}
|}
Gold and silver coins have been previously minted for general circulation from the 18th to the 20th centuries. The last gold coins were minted in 1933. The last 90% silver coins were minted in 1964, and the last 40% silver half dollar was minted in 1970.
The [[United States Mint]] currently produces circulating coins at the [[Philadelphia Mint|Philadelphia]] and [[Denver Mint]]s, and commemorative and proof coins for collectors at the [[San Francisco Mint|San Francisco]] and [[West Point Mint]]s. Mint mark conventions for these and for past mint branches are discussed in ''[[Coins of the United States dollar#Mint marks]]''.
The [[Dollar coin (United States)|one-dollar coin]] has never been in popular circulation from 1794 to present, despite several attempts to increase their usage since the 1970s, the most important reason of which is the continued production and popularity of the [[United States one-dollar bill|one-dollar bill]].<ref>Anderson, Gordon T. April 25, 2005. "[https://money.cnn.com/2005/04/27/pf/new_dollar/ Congress tries again for a dollar coin] {{Webarchive|url=https://web.archive.org/web/20220321162858/https://money.cnn.com/2005/04/27/pf/new_dollar/ |date=March 21, 2022 }}." ''[[CNN Money]].''</ref> [[Half dollar (United States coin)|Half dollar coins]] were commonly used currency since inception in 1794, but has fallen out of use from the mid-1960s when all silver half dollars began to be hoarded.
The [[nickel (United States coin)|nickel]] is the only coin whose size and composition (5 grams, 75% copper, and 25% nickel) is still in use from 1865 to today, except for wartime 1942–1945 [[Jefferson nickel]]s which contained silver.
Due to the penny's low value, some [[Efforts to eliminate the penny in the United States|efforts have been made to eliminate the penny]] as circulating coinage.<ref>{{cite web|author=Christian Zappone|date=July 18, 2006|title=Kill-the-penny bill introduced|url=https://money.cnn.com/2006/07/18/news/penny/index.htm|access-date=October 17, 2018|website=CNN Money|archive-date=July 28, 2019|archive-url=https://web.archive.org/web/20190728021810/https://money.cnn.com/2006/07/18/news/penny/index.htm|url-status=live}}</ref><ref>{{cite news|last=Weinberg|first=Ali|date=February 19, 2013|title=Penny pinching: Can Obama manage elimination of one-cent coin?|publisher=[[NBC News]]|url=http://firstread.nbcnews.com/_news/2013/02/19/17019470-penny-pinching-can-obama-manage-elimination-of-one-cent-coin?lite|access-date=October 17, 2018|archive-date=October 18, 2018|archive-url=https://web.archive.org/web/20181018043045/http://firstread.nbcnews.com/_news/2013/02/19/17019470-penny-pinching-can-obama-manage-elimination-of-one-cent-coin?lite|url-status=live}}</ref>
For a discussion of other discontinued and canceled denominations, see ''[[Obsolete denominations of United States currency#Coinage|Obsolete denominations of United States currency]]'' and ''[[Canceled denominations of United States currency#Coinage|Canceled denominations of United States currency]]''.
=== Collector coins ===
Collector coins are technically legal tender at face value but are usually worth far more due to their numismatic value or for their precious metal content. These include:
* [[American Eagle bullion coins]]
**[[American Silver Eagle]] $1 (1 [[troy ounce|troy oz]]) Silver bullion coin 1986–present
**[[American Gold Eagle]] $5 ({{frac|1|10}} troy oz), $10 ({{frac|1|4}} troy oz), $25 ({{frac|1|2}} troy oz), and $50 (1 troy oz) Gold bullion coin 1986–present
**[[American Platinum Eagle]] $10 ({{frac|1|10}} troy oz), $25 ({{frac|1|4}} troy oz), $50 ({{frac|1|2}} troy oz), and $100 (1 troy oz) Platinum bullion coin 1997–present
**[[American Palladium Eagle]] $25 (1 troy oz) Palladium bullion coin 2017–present
* [[United States commemorative coin]]s—special issue coins, among these:
**[[Half union|$50.00 (Half Union)]] minted for the [[Panama-Pacific International Exposition (1915)]]
**Silver proof sets minted since 1992 with dimes, quarters and half-dollars made of silver rather than the standard copper-nickel
**[[Presidential dollar coins]] proof sets minted since 2007
== Banknotes ==
{{Main|Federal Reserve Note}}
{| class="wikitable sortable"
|- style="background:#2E8B57;"
! Denomination
! Front
! Reverse
! Portrait
! Reverse motif
! First series
! Latest series
! Circulation
|-
| [[United States one-dollar bill|One dollar]]
| [[File:Onedolar2009series.jpg|250px]]
| [[File:US one dollar bill, reverse, series 2009.jpg|250px]]
| [[George Washington]]
| [[Great Seal of the United States]]
| Series 1963{{refn| group = lower-alpha | Obverse}}<br>Series 1935{{refn| group = lower-alpha | Reverse}}
| Series 2021<ref>{{Cite web |url=https://www.coinworld.com/news/paper-money/series-2021-dollar-notes-now-being-found-in-circulation |title=Series 2021 dollar notes now being found in circulation |date=2023-06-29 |access-date=2024-04-26 |website=Coin World |last=Gibbs |first=William T.}}</ref>
| Wide
|-
| [[United States two-dollar bill|Two dollars]]
| [[File:US $2 obverse.jpg|250px]]
| [[File:US $2 reverse.jpg|250px]]
| [[Thomas Jefferson]]
| ''[[Declaration of Independence (Trumbull)|Declaration of Independence]]'' by [[John Trumbull]]
| Series 1976
| Series 2017A
| Limited<ref>{{Cite web |url=https://edition.cnn.com/2022/09/17/business/2-dollar-bill-history/index.html |title=Why it's time to start paying with $2 bills |date=September 20, 2022 |access-date=February 6, 2024 |website=CNN |last=Meyersohn |first=Nathaniel}}</ref>
|-
| [[United States five-dollar bill|Five dollars]]
| [[File:US $5 Series 2006 obverse.jpg|250px]]
| [[File:US $5 Series 2006 reverse.jpg|250px]]
| [[Abraham Lincoln]]
| [[Lincoln Memorial]]
| Series 2006
| Series 2021<ref>{{Cite web |url=https://en.numista.com/catalogue/note201558.html |title=5 Dollars (Federal Reserve Note; colored) - United States |access-date=June 7, 2023 |archive-date=June 7, 2023 |archive-url=https://web.archive.org/web/20230607080122/https://en.numista.com/catalogue/note201558.html |url-status=live }}</ref>
| Wide
|-
| [[United States ten-dollar bill|Ten dollars]]
| [[File:US10dollarbill-Series 2004A.jpg|250px]]
| [[File:US $10 Series 2004 reverse.jpg|250px]]
| [[Alexander Hamilton]]
| [[Treasury Building (Washington, D.C.)|Treasury Building]]
| Series 2004A
| Series 2017A
| Wide
|-
| [[United States twenty-dollar bill|Twenty dollars]]
| [[File:US20-front.jpg|250px]]
| [[File:US20-back.jpg|250px]]
| [[Andrew Jackson]]
| [[White House]]
| Series 2004
| Series 2017A
| Wide
|-
| [[United States fifty-dollar bill|Fifty dollars]]
| [[File:50 USD Series 2004 Note Front.jpg|250px]]
| [[File:50 USD Series 2004 Note Back.jpg|250px]]
| [[Ulysses S. Grant]]
| [[United States Capitol]]
| Series 2004
| Series 2017A
| Wide
|-
| [[United States one hundred-dollar bill|One hundred dollars]]
| [[File:New100front.jpg|250px]]
| [[File:New100back.jpg|250px]]
| [[Benjamin Franklin]]
| [[Independence Hall]]
| Series 2009A<ref>{{Cite web|url=https://www.uscurrency.gov/denominations/100|title=$100 Note {{pipe}} U.S. Currency Education Program|access-date=April 22, 2021|archive-date=August 20, 2020|archive-url=https://web.archive.org/web/20200820044305/https://www.uscurrency.gov/denominations/100|url-status=live}}</ref>
| Series 2017A
| Wide
|}
The [[Constitution of the United States|U.S. Constitution]] provides that Congress shall have the power to "borrow money on the credit of the United States."<ref>{{cite web |url=https://www.law.cornell.edu/constitution/articlei#section8 |title=Paragraph 2 of Section 8 of Article 1 of the United States Constitution |publisher=Topics.law.cornell.edu |access-date=October 17, 2018 |archive-date=November 18, 2021 |archive-url=https://web.archive.org/web/20211118233715/https://www.law.cornell.edu/constitution/articlei#section8 |url-status= live }}</ref> Congress has exercised that power by authorizing [[Federal Reserve Banks]] to issue [[Federal Reserve Notes]]. Those notes are "obligations of the United States" and "shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank".<ref>{{cite web |url= https://www.law.cornell.edu/uscode/text/12/411 |title=Section 411 of Title 12 of the United States Code |publisher=Law.cornell.edu |date= June 22, 2010 |access-date=October 17, 2018 |archive-date=June 27, 2019 |archive-url=https://web.archive.org/web/20190627142205/https://www.law.cornell.edu/uscode/text/12/411 |url-status=live }}</ref> Federal Reserve Notes are designated by law as "[[legal tender]]" for the payment of debts.<ref>{{cite web |url=https://www.law.cornell.edu/uscode/text/31/5103 |title=Section 5103 of Title 31 of the United States Code |publisher=Law.cornell.edu |date=August 6, 2010 |access-date=October 17, 2018 |archive-date=October 22, 2018 |archive-url=https://web.archive.org/web/20181022211409/https://www.law.cornell.edu/uscode/text/31/5103 |url-status=live }}</ref> Congress has also authorized the issuance of [[Federal Reserve Note|more than 10 other types of banknotes]], including the [[United States Note]]<ref>{{cite web |url=https://www.law.cornell.edu/uscode/text/31/5115 |title=Section 5115 of Title 31 of the United States Code |publisher=Law.cornell.edu |date=August 6, 2010 |access-date=October 17, 2018 |archive-date=June 27, 2019 |archive-url= https://web.archive.org/web/20190627142206/https://www.law.cornell.edu/uscode/text/31/5115 |url-status=live }}</ref> and the [[Federal Reserve Bank Note]]. The Federal Reserve Note is the only type that remains in circulation since the 1970s. [[Federal Reserve Notes]] are printed by the [[Bureau of Engraving and Printing]] and are made from [[Cotton paper|cotton fiber paper]] (as opposed to [[Wood fibre|wood fiber]] used to make common paper). The "[[large-sized note]]s" issued before 1928 measured {{convert|7.42 x 3.125|in |mm |abbr= on}}, while [[small-sized note]]s introduced that year measure {{convert|6.14 x 2.61 x 0.0043|in|mm|abbr=on}}.<ref>{{Cite web |url= https://books.google.com/books?id=qqQuAAAAMAAJ&pg=PA105|title=Treasury Department Appropriation Bill for 1929: Hearing Before the Subcommittee of House Committee on Appropriations... Seventieth Congress, First Session|year=1928}}</ref> The dimensions of the modern (small-size) U.S. currency is identical to the size of [[Philippine peso]] banknotes issued under United States administration after 1903, which had proven highly successful.<ref>{{Cite book|url=https://books.google.com/books?id=DhRjDwAAQBAJ&pg=PT16|title = Standard Guide to Small-Size U.S. Paper Money – 1928-Date|isbn = 9781440225789|last1 = Schwarz|first1 = John|last2 = Lindquist|first2 = Scott |date = September 21, 2009| publisher=Penguin }}</ref> The American large-note bills became known as "horse blankets" or "saddle blankets".<ref name="Orzano">{{cite web |last1=Orzano |first1=Michele |title=What is a horse blanket note? |date = February 25, 2015 |url= https://www.coinworld.com/news/precious-metals/what-is-a-horse-blanket-note.html |website=Coin World |url-status=live |archive-date= November 29, 2021 |archive-url=https://web.archive.org/web/20211129024946/https://www.coinworld.com/news/precious-metals/what-is-a-horse-blanket-note.html }}</ref>
Currently printed denominations are [[United States one-dollar bill|$1]], [[United States two-dollar bill|$2]], [[United States five-dollar bill|$5]], [[United States ten-dollar bill|$10]], [[United States twenty-dollar bill|$20]], [[United States fifty-dollar bill|$50]], and [[United States one hundred-dollar bill|$100]]. Notes above the $100 denomination stopped being printed in 1946 and were officially withdrawn from circulation in 1969. These notes were used primarily in inter-bank transactions or by [[organized crime]]; it was the latter usage that prompted President [[Richard Nixon]] to issue an executive order in 1969 halting their use. With the advent of electronic banking, they became less necessary. Notes in denominations of [[United States five-hundred-dollar bill|$500]], [[United States one-thousand-dollar bill|$1,000]], [[United States five-thousand-dollar bill|$5,000]], [[United States ten-thousand-dollar bill|$10,000]] (discontinued, but still legal tender); [[United States one hundred-thousand-dollar bill|$100,000]] were all produced at one time; see [[large denomination bills in U.S. currency]] for details. With the exception of the $100,000 bill (which was only issued as a Series 1934 Gold Certificate and was never publicly circulated; thus it is illegal to own), these notes are now collectors' items and are worth more than their face value to collectors.
Though still predominantly green, the post-2004 series incorporate other colors to better distinguish different denominations. As a result of a 2008 decision in an accessibility lawsuit filed by the [[American Council of the Blind]], the [[Bureau of Engraving and Printing]] is planning to implement a raised tactile feature in the next redesign of each note, except the $1 and the current version of the $100 bill. It also plans larger, higher-contrast numerals, more color differences, and distribution of currency readers to assist the visually impaired during the transition period.{{efn|See {{section link|Federal Reserve Note|Lawsuit over U.S. banknote design}} for details and references.}}
==Countries that use US dollar==
===Formal users===
{{div col|colwidth=20em}}
* {{Flagcountry|United States of America}}
** including 5 territories:
*** {{Flagcountry|American Samoa}}
*** {{Flagcountry|Guam}}
*** {{Flagcountry|Northern Mariana Islands}}
*** {{Flagcountry|Puerto Rico}}
*** {{Flagcountry|United States Virgin Islands}}
** [[United States Minor Outlying Islands]]
*[[Compact of Free Association]]
** {{Flagcountry|Marshall Islands}}
** {{Flagcountry|Federated States of Micronesia}}
** {{Flagcountry|Palau}}
* {{Flagcountry|East Timor}},<ref>{{cite web |url = https://www.bancocentral.tl/en/go/banknotes-in-circulation |title = Central Bank of Timor-Leste |access-date = March 22, 2017 |quote = The official currency of Timor-Leste is the United States dollar, which is legal tender for all payments made in cash. |archive-date = May 1, 2019 |archive-url = https://web.archive.org/web/20190501173907/https://www.bancocentral.tl/en/go/banknotes-in-circulation |url-status = live }}</ref> alongside [[East Timor centavo coins]]
* {{Flagcountry|Ecuador}},<ref>{{cite web |url = https://www.cia.gov/the-world-factbook/countries/ecuador/ |title = Ecuador |work = [[CIA World Factbook]] |access-date = October 17, 2018 |date = October 18, 2010 |quote = The dollar is legal tender |archive-date = January 10, 2021 |archive-url = https://web.archive.org/web/20210110072816/https://www.cia.gov/the-world-factbook/countries/ecuador |url-status = live }}</ref> alongside [[Ecuadorian centavo coins]]
* {{Flagcountry|El Salvador}},<ref>{{cite web |url = https://www.cia.gov/the-world-factbook/countries/el-salvador/ |title = El Salvador |work = [[CIA World Factbook]] |access-date = October 17, 2018 |date = October 21, 2010 |quote = The US dollar became El Salvador's currency in 2001 |archive-date = May 7, 2021 |archive-url = https://web.archive.org/web/20210507021641/https://www.cia.gov/the-world-factbook/countries/el-salvador/ |url-status = live }}</ref> alongside [[Bitcoin]]
* {{Flagcountry|Liberia}},<ref>{{Cite web |title=Currency |url=https://cbl.org.lr/general/currency |access-date=January 15, 2023 |website=Central Bank of Liberia |archive-date=January 15, 2023 |archive-url=https://web.archive.org/web/20230115023814/https://cbl.org.lr/general/currency |url-status=live }}</ref> alongside [[Liberian dollar]]
* {{Flagcountry|Panama}}, alongside [[Panamanian balboa]]
* [[British Overseas Territories]] belonging to the [[United Kingdom of Great Britain and Northern Ireland]]:
** {{flagcountry|British Virgin Islands}}
** {{flagcountry|Turks and Caicos Islands}}
* In the [[Caribbean Netherlands]], part of the [[Netherlands]]:
** {{flagcountry|Bonaire}}
** {{flagcountry|Saba}}
** {{flagcountry|Sint Eustatius}}
{{div col end}}
===Informal users===
* {{flagcountry|Argentina}},<ref>{{Cite web |title=How the US Dollar Became a Popular Currency in Argentina |url=https://anthropology.princeton.edu/events/how-us-dollar-became-popular-currency-argentina |access-date=2024-05-13 |website=Anthropology@Princeton |language=en}}</ref> official currency is [[Argentine peso]]
* {{flagcountry|Cambodia}},<ref>{{cite web |last1=Nay Im |first1=Tal |last2=Dabadie |first2=Michel |title=Dollarization in Cambodia |url=https://www.nbc.org.kh/download_files/publication/others_eng/NoteMD117-14_article_dollarization.pdf |website=National Bank of Cambodia |access-date=April 11, 2022 |language=English |date=March 31, 2007 |archive-date=May 11, 2022 |archive-url=https://web.archive.org/web/20220511203155/https://www.nbc.org.kh/download_files/publication/others_eng/NoteMD117-14_article_dollarization.pdf |url-status=live }}</ref><ref>{{cite news |last1=Nagumo |first1=Jada |title=Cambodia aims to wean off US dollar dependence with digital currency |url=https://asia.nikkei.com/Business/Markets/Currencies/Cambodia-aims-to-wean-off-US-dollar-dependence-with-digital-currency#:~:text=Cambodia%20runs%20a%20dual%2Dcurrency,of%20civil%20war%20and%20unrest. |access-date=April 11, 2022 |publisher=Nikkei Asia |date=August 4, 2021 |quote="Cambodia runs a dual-currency system, with the U.S. dollar widely circulating in its economy. The country's dollarization began in the 1980s and 90s, following years of civil war and unrest." |archive-date=April 15, 2022 |archive-url=https://web.archive.org/web/20220415063706/https://asia.nikkei.com/Business/Markets/Currencies/Cambodia-aims-to-wean-off-US-dollar-dependence-with-digital-currency#:~:text=Cambodia%20runs%20a%20dual%2Dcurrency,of%20civil%20war%20and%20unrest. |url-status=live }}</ref> alongside [[Cambodian riel]]
* {{flagcountry|Venezuela}}, alongside [[Venezuelan Bolivar]]<ref>{{Cite web|url=https://www.bloomberg.com/news/articles/2019-11-05/venezuela-is-now-more-than-50-dollarized-study-finds|title=Venezuela Is Now More Than 50% Dollarized, Study Finds|last=Zerpa|first=Fabiola|date=November 5, 2019|website=Bloomberg|access-date=November 9, 2019}}</ref><ref>{{Cite news|url=https://www.reuters.com/article/us-venezuela-economy/maduro-says-thank-god-for-dollarization-in-venezuela-idUSKBN1XR0RV|title=Maduro says 'thank God' for dollarization in Venezuela|date=November 17, 2019|work=[[Reuters]]|access-date=November 18, 2019}}</ref>
* {{Flagcountry|Zimbabwe}}, alongside [[Zimbabwean ZiG|Gold]]
* [[British Overseas Territories]] belonging to the [[United Kingdom of Great Britain and Northern Ireland]]:
** {{flagcountry|British Indian Ocean Territory}}, official currency is [[Pound sterling]]
* In the [[Kingdom of the Netherlands]]:
** {{flagcountry|Sint Maarten}}, official currency is [[Netherlands Antillean guilder]]
* {{flagcountry|Collectivity of Saint Martin}} ([[overseas collectivity]], an integral part of [[France]]) - official currency is Euro
* {{Flag country|Honduras}}, official currency is [[Honduran lempira]]<ref>{{Cite news |url=https://www.laprensa.hn/honduras/honduras-roatan-prefiere-cobrar-dolares-lempiras-no-bitcoin-cirptomonedas-DC16361064 |title=Roatán prefiere cobrar en dólares o lempiras; no bitcóin |trans-title=Roatán prefers to charge in dollars or lempiras; not bitcoin |language=es |website=laprensa.hn |publisher=[[La Prensa (Honduras)|La Prensa]] |last=Rivera |first=Juan Carlos |date=November 23, 2023 |access-date=July 12, 2024}}</ref>
* {{Flag country|Lebanon}}, official currency is [[Lebanese Pound]]<ref>{{Cite news|url= https://apnews.com/article/lebanon-economy-crisis-currency-pound-dollarization-44f8173d75d2e1a37526b3e1252c5a92|title=Lebanon leans on US dollar to cope as currency, economy tank|date=March 6, 2023|work=[[Associated Press]]|access-date=November 1, 2024}}</ref>
==Monetary policy==
{{See also|Federal Reserve|Monetary policy|Monetary policy of the United States|money supply}}
[[File:Marriner S. Eccles Federal Reserve Board Building.jpg|thumb|right|The [[Eccles Building|Headquarters of the Federal Reserve System]] in Washington, D.C.]]
The [[Federal Reserve Act]] created the [[Federal Reserve System]] in 1913 as the [[central bank]] of the [[United States]]. Its primary task is
to conduct the nation's [[monetary policy]] to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy. It is also tasked to promote the stability of the financial system and regulate financial institutions, and to act as [[lender of last resort]].<ref>{{Cite web|url=https://www.federalreserve.gov/aboutthefed/pf.htm|title=Federal Reserve Board – Purposes & Functions|access-date=June 11, 2021|archive-date=March 26, 2020|archive-url=https://web.archive.org/web/20200326220219/https://www.federalreserve.gov/aboutthefed/pf.htm|url-status=live}}</ref><ref>{{cite web |url=https://www.federalreserve.gov/aboutthefed/files/pf_3.pdf |title=Conducting Monetary Policy |publisher=United States Federal Reserve |access-date=August 23, 2021 |url-status=live |archive-date=August 11, 2021 |archive-url=https://web.archive.org/web/20210811112907/https://www.federalreserve.gov/aboutthefed/files/pf_3.pdf }}</ref>
The [[Monetary policy of the United States]] is conducted by the [[Federal Open Market Committee]], which is composed of the [[Federal Reserve Board of Governors]] and 5 out of the 12 Federal Reserve Bank presidents, and is implemented by all twelve regional [[Federal Reserve Bank]]s.
[[Monetary policy]] refers to actions made by central banks that determine the size and growth rate of the [[money supply]] available in the economy, and which would result in desired objectives like low inflation, low unemployment, and stable financial systems. The economy's aggregate [[money supply]] is the total of
* '''M0 money, or Monetary Base''' – "dollars" in currency and [[bank money]] balances credited to the central bank's depositors, which are backed by the central bank's assets,
* '''plus M1, M2, M3 money''' – "dollars" in the form of [[bank money]] balances credited to banks' depositors, which are backed by the bank's assets and investments.
The FOMC influences the level of money available to the economy by the following means:
* '''Reserve requirements''' – specifies a required minimum percentage of deposits in a [[commercial bank]] that should be held as a reserve (i.e. as deposits with the Federal Reserve), with the rest available to loan or invest. Higher requirements mean less money loaned or invested, helping keep inflation in check. Raising the '''[[federal funds rate]]''' earned on those reserves also helps achieve this objective.
* '''Open market operations''' – the Federal Reserve buys or sells [[United States Treasury security|US Treasury bonds]] and other securities held by banks in exchange for reserves; more reserves increase a bank's capacity to loan or invest elsewhere.
* '''Discount window lending''' – banks can borrow from the Federal Reserve.
[[Monetary policy]] directly affects interest rates; it indirectly affects stock prices, wealth, and currency exchange rates. Through these channels, monetary policy influences spending, investment, production, employment, and inflation in the United States. Effective [[monetary policy]] complements [[fiscal policy]] to support economic growth.
The adjusted monetary base has increased from approximately $400&nbsp;billion in 1994, to $800&nbsp;billion in 2005, and to over $3&nbsp;trillion in 2013.<ref>{{cite web | url=https://fred.stlouisfed.org/series/BASE/ | title=St. Louis Adjusted Monetary Base | date=February 15, 1984 | publisher=[[Federal Reserve Bank of St. Louis]] | access-date=October 17, 2018 | archive-date=October 17, 2018 | archive-url=https://web.archive.org/web/20181017105432/https://fred.stlouisfed.org/series/BASE/ | url-status=live }}</ref>
When the Federal Reserve makes a purchase, it credits the seller's reserve account (with the Federal Reserve). This money is not transferred from any existing funds—it is at this point that the Federal Reserve has created new [[high-powered money]]. Commercial banks then decide how much money to keep in deposit with the Federal Reserve and how much to hold as physical currency. In the latter case, the Federal Reserve places an order for printed money from the U.S. Treasury Department.<ref>{{cite web |title=Fact Sheets: Currency & Coins |publisher=United States Department of the Treasury |url=https://www.treasury.gov/about/education/Pages/edu_fact-sheets_currency_index.aspx |access-date=October 17, 2018 |archive-date=October 18, 2018 |archive-url=https://web.archive.org/web/20181018003113/https://www.treasury.gov/about/education/Pages/edu_fact-sheets_currency_index.aspx |url-status=live }}</ref> The Treasury Department, in turn, sends these requests to the Bureau of Engraving and Printing (to print new [[Federal Reserve notes|dollar bills]]) and the Bureau of the Mint (to stamp the coins).
The Federal Reserve's monetary policy objectives to keep prices stable and unemployment low is often called the ''dual mandate''. This replaces past practices under a [[gold standard]] where the main concern is the gold equivalent of the local currency, or under a gold exchange standard where the concern is fixing the exchange rate versus another gold-convertible currency (previously practiced worldwide under the [[Bretton Woods Agreement]] of 1944 via fixed exchange rates to the U.S. dollar).
==International use as reserve currency==
{{See also|Reserve currency|International monetary system|Eurodollar|Exorbitant privilege|Strong dollar policy|Dollarization}}
{{Main|International use of the U.S. dollar}}
[[File:DOLLAR AND EURO IN THE WORLD.svg|right|300px|thumb|Worldwide use of the U.S. dollar:
{{Legend|#099811|United States}}
{{Legend|#99FF9E|External adopters of the US dollar}}
{{Legend|#999909|Currencies pegged to the US dollar}}
{{Legend|#FFFF99|Currencies pegged to the US dollar w/ narrow band}}
Worldwide use of the [[euro]]:
{{Legend|#092D98|[[Eurozone]]}}
{{Legend|#98b3ff|External adopters of the euro}}
{{Legend|#510999|Currencies pegged to the euro}}
{{Legend|#CC99FF|Currencies pegged to the euro w/ narrow band}}]]
===Ascendancy===
The primary currency used for global trade between [[Europe]], [[Asia]], and [[the Americas]] has historically been the Spanish-American [[Spanish dollar|silver dollar]], which created a global [[silver standard]] system from the 16th to 19th centuries, due to abundant silver supplies in [[Spanish America]].<ref>{{Cite web|url = https://nationalinterest.org/feature/the-silver-way-explains-how-the-old-mexican-dollar-changed-20410|title = 'The Silver Way' Explains How the Old Mexican Dollar Changed the World|date = April 30, 2017|access-date = June 8, 2021|archive-date = May 16, 2021|archive-url = https://web.archive.org/web/20210516053428/https://nationalinterest.org/feature/the-silver-way-explains-how-the-old-mexican-dollar-changed-20410|url-status = live}}</ref>
The U.S. dollar itself was derived from this coin. The [[Spanish dollar]] was later displaced by the British [[pound sterling]] in the advent of the international [[gold standard]] in the last quarter of the 19th century.
The U.S. dollar began to displace the [[pound sterling]] as international [[reserve currency]] from the 1920s since it emerged from the [[First World War]] relatively unscathed and since the [[United States]] was a significant recipient of wartime gold inflows.<ref>{{Cite journal|last1=Eichengreen|first1=Barry|last2=Flandreau|first2=Marc|date=2009|title=The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency?)|url=https://www.cambridge.org/core/journals/european-review-of-economic-history/article/abs/rise-and-fall-of-the-dollar-or-when-did-the-dollar-replace-sterling-as-the-leading-reserve-currency/9C78B88EBC0099E26A105DEC90CBE103|journal=European Review of Economic History|language=en|volume=13|issue=3|pages=377–411|doi=10.1017/S1361491609990153|s2cid=154773110|issn=1474-0044|access-date=April 16, 2021|archive-date=January 7, 2023|archive-url=https://web.archive.org/web/20230107213045/https://www.cambridge.org/core/journals/european-review-of-economic-history/article/abs/rise-and-fall-of-the-dollar-or-when-did-the-dollar-replace-sterling-as-the-leading-reserve-currency/9C78B88EBC0099E26A105DEC90CBE103|url-status=live}}</ref>
After the U.S. emerged as an even stronger global [[superpower]] during the [[Second World War]], the [[Bretton Woods Agreement]] of 1944 established the post-war international monetary system, with the U.S. dollar ascending to become the world's primary [[reserve currency]] for international trade, and the only post-war currency linked to gold at $35 per [[troy ounce]].<ref>{{Cite web|url=https://www.thebalance.com/bretton-woods-system-and-1944-agreement-3306133|title=How a 1944 Agreement Created a New World Order|access-date=June 8, 2021|archive-date=May 20, 2021|archive-url=https://web.archive.org/web/20210520170717/https://www.thebalance.com/bretton-woods-system-and-1944-agreement-3306133|url-status=live}}</ref>
===As international reserve currency===
The U.S. dollar is joined by the world's other major currencies – the [[euro]], [[pound sterling]], [[Japanese yen]] and Chinese [[renminbi]] – in the currency basket of the [[special drawing rights]] of the [[International Monetary Fund]]. Central banks worldwide have huge reserves of U.S. dollars in their holdings and are significant buyers of [[United States Treasury security|U.S. treasury bills and notes]].<ref>{{Cite web |url=https://ticdata.treasury.gov/Publish/mfh.txt |title=MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES |date=March 15, 2023 |access-date=May 22, 2023 |website=US Treasury |archive-date=November 23, 2010 |archive-url=https://web.archive.org/web/20101123161108/http://www.ustreas.gov/tic/mfh.txt |url-status=live }}</ref>
Foreign companies, entities, and private individuals hold U.S. dollars in foreign deposit accounts called [[eurodollar]]s (not to be confused with the [[euro]]), which are outside the jurisdiction of the [[Federal Reserve System]]. Private individuals also hold dollars outside the banking system mostly in the form of [[United States one-hundred-dollar bill|US$100 bills]], of which 80% of its supply is held overseas.
The [[United States Department of the Treasury]] exercises considerable oversight over the [[SWIFT|SWIFT financial transfers network]],<ref>{{Cite web|url=https://www.swift.com/about-us/organisation-governance/swift-oversight|title=SWIFT oversight|access-date=June 8, 2021|archive-date=June 16, 2023|archive-url=https://web.archive.org/web/20230616122658/https://www.swift.com/about-us/organisation-governance/swift-oversight|url-status=live}}</ref> and consequently has a huge sway on the global [[financial transaction]]s systems, with the ability to impose sanctions on foreign entities and individuals.<ref>{{Cite web|url=https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information|title=Sanctions Programs and Country Information {{pipe}} U.S. Department of the Treasury|access-date=June 8, 2021|archive-date=June 16, 2023|archive-url=https://web.archive.org/web/20230616122725/https://ofac.treasury.gov/sanctions-programs-and-country-information|url-status=live}}</ref>
===In the global markets===
The U.S. dollar is predominantly the standard currency unit in which goods are quoted and traded, and with which payments are settled, in the global [[commodity markets]].<ref>{{Cite web|url=https://www.thebalance.com/how-the-dollar-impacts-commodity-prices-809294|title=Impact of the Dollar on Commodity Prices|access-date=June 8, 2021|archive-date=March 1, 2023|archive-url=https://web.archive.org/web/20230301181602/https://www.thebalance.com/how-the-dollar-impacts-commodity-prices-809294|url-status=live}}</ref> The [[U.S. Dollar Index]] is an important indicator of the dollar's strength or weakness versus a basket of six foreign currencies.
The [[United States Government]] is capable of borrowing trillions of dollars from the global capital markets in U.S. dollars issued by the [[Federal Reserve System|Federal Reserve]], which is itself under U.S. government purview, at minimal interest rates, and with virtually zero default risk. In contrast, foreign governments and corporations incapable of raising money in their own local currencies are forced to issue debt denominated in U.S. dollars, along with its consequent higher interest rates and risks of default.<ref>{{Cite web|url=https://www.investopedia.com/terms/d/dollarbond.asp|title=Dollar Bond|access-date=June 8, 2021 |archive-date=June 8, 2021|archive-url=https://web.archive.org/web/20210608195312/https://www.investopedia.com/terms/d/dollarbond.asp|url-status=live}}</ref> The United States's ability to borrow in its own currency without facing a significant balance of payments crisis has been frequently described as its [[exorbitant privilege]].<ref>{{Cite web|first = Ben S.|last = Bernanke|date = January 7, 2016|archive-date = June 8, 2021|archive-url = https://web.archive.org/web/20210608195319/https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-dollars-international-role-an-exorbitant-privilege-2/ |url-status = live |url = https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-dollars-international-role-an-exorbitant-privilege-2/ |title = The dollar's international role: An "exorbitant privilege"? |access-date = }}</ref>
A frequent topic of debate is whether the [[strong dollar policy]] of the United States is indeed in America's own best interests, as well as in the best interest of the [[United Nations|international community]].<ref>{{cite news |url=https://www.bloomberg.com/quicktake/almighty-dollar |title=The Strong Dollar |work=Bloomberg |last=Mohsin |first=Saleha |date=January 21, 2021 |access-date=August 23, 2021 |url-access=subscription |archive-date=August 22, 2021 |archive-url=https://web.archive.org/web/20210822140416/https://www.bloomberg.com/quicktake/almighty-dollar |url-status=live }}</ref>
===Currencies fixed to the U.S. dollar===
For a more exhaustive discussion of countries using the U.S. dollar as official or customary currency, or using currencies which are pegged to the U.S. dollar, see ''[[International use of the U.S. dollar#Dollarization and fixed exchange rates]]'' and ''[[Currency substitution#US dollar]]''.
Countries using the U.S. dollar as their official currency include:
* In the Americas: [[Panamanian balboa|Panama]], [[Ecuadorian centavo coins|Ecuador]], [[El Salvador]], [[British Virgin Islands]], [[Turks and Caicos Islands]], and the [[Caribbean Netherlands]].
* The constituent states of the former [[Trust Territory of the Pacific Islands]]: [[Palau]], the [[Federated States of Micronesia]], and the [[Marshall Islands]].
* Others: [[East Timor centavo coins|East Timor]].
Among the countries using the U.S. dollar together with other foreign currencies and their local currency are [[Cambodian riel|Cambodia]] and [[Zimbabwe]].
Currencies pegged to the U.S. dollar include:
* In the Caribbean: the [[Bahamian dollar]], [[Barbadian dollar]], [[Belize dollar]], [[Bermudian dollar]], [[Cayman Islands dollar]], [[Eastern Caribbean dollar]], [[Netherlands Antillean guilder]] and the [[Aruban florin]].
* The currencies of five oil-producing Arab countries: the [[Saudi riyal]], [[United Arab Emirates dirham]], [[Omani rial]], [[Qatari riyal]] and the [[Bahraini dinar]].
* Others: the [[Hong Kong dollar]], [[Macanese pataca]], [[Jordanian dinar]], [[Lebanese pound]].
==Value==
{{Update section|date=April 2024|reason=No new data from the past 12 years (ignoring the difficult to read graphs up to 2021 labeled "Inflation of the dollar"), but prices of many foods along have increased 2-4x or more as one example, but pay isn't increasing at all for most people.  The actual inflation numbers would be interesting.}}
{| cellspacing="0" cellpadding="0" class="floatright"
|+ Buying power of one U.S. dollar compared to 1775 [[Spanish milled dollar]]
|- valign="top"
|
{| class="wikitable" style="margin:0;"
|-
!&nbsp;Year&nbsp;
!style="width: 40pt; font-size: 95%;"|&nbsp;Equivalent&nbsp;buying power
|-
|1775||&nbsp;$1.00
|-
|1780||&nbsp;$0.59
|-
|1790||&nbsp;$0.89
|-
|1800||&nbsp;$0.64
|-
|1810||&nbsp;$0.66
|-
|1820||&nbsp;$0.69
|-
|1830||&nbsp;$0.88
|-
|1840||&nbsp;$0.94
|-
|1850||&nbsp;$1.03
|-
|1860||&nbsp;$0.97
|}
|
{| class="wikitable" style="margin:0;"
|-
!&nbsp;Year&nbsp;
!style="width: 40pt; font-size: 95%;"|&nbsp;Equivalent&nbsp;buying power
|-
|1870||&nbsp;$0.62
|-
|1880||&nbsp;$0.79
|-
|1890||&nbsp;$0.89
|-
|1900||&nbsp;$0.96
|-
|1910||&nbsp;$0.85
|-
|1920||&nbsp;$0.39
|-
|1930||&nbsp;$0.47
|-
|1940||&nbsp;$0.56
|-
|1950||&nbsp;$0.33
|-
|1960||&nbsp;$0.26
|}
|
{| class="wikitable" style="margin:0;"
|-
!&nbsp;Year&nbsp;
!style="width: 40pt; font-size: 95%;"|&nbsp;Equivalent&nbsp;buying power
|-
|1970||&nbsp;$0.20
|-
|1980||&nbsp;$0.10
|-
|1990||&nbsp;$0.06
|-
|2000||&nbsp;$0.05
|-
|2007||&nbsp;$0.04
|-
|2008||&nbsp;$0.04
|-
|2009||&nbsp;$0.04
|-
|2010||&nbsp;$0.035
|-
|2011||&nbsp;$0.034
|-
|2012||&nbsp;$0.03
|}
|}
[[File:Inflation value of dollar.webp|thumb|400px|Inflation value of dollar]]
The 6th paragraph of [[Coinage clause|Section 8]] of Article 1 of the U.S. Constitution provides that the U.S. Congress shall have the power to "coin money" and to "regulate the value" of domestic and foreign coins. Congress exercised those powers when it enacted the [[Coinage Act of 1792]]. That Act provided for the minting of the [[Flowing Hair Dollar|first U.S. dollar]] and it declared that the U.S. dollar shall have "the value of a [[Spanish milled dollar]] as the same is now current".<ref>{{cite web |url=http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=001/llsl001.db&recNum=371 |title=Section 9 of the Coinage Act of 1792 |publisher=American Memory - Library of Congress |access-date=August 24, 2010 |archive-date=July 29, 2020 |archive-url=https://web.archive.org/web/20200729031805/http://memory.loc.gov/cgi-bin/ampage?collId=llsl&fileName=001%2Fllsl001.db&recNum=371 |url-status=live }}</ref>
The table above shows the equivalent amount of goods that, in a particular year, could be purchased with $1. The table shows that from 1774 through 2012 the U.S. dollar has lost about 97.0% of its buying power.<ref name="measuring-worth">{{cite web | title = Measuring Worth&nbsp;– Purchasing Power of Money in the United States from 1774 to 2010 | url = https://www.measuringworth.com/calculators/ppowerus/ | access-date = April 22, 2010 | archive-date = June 16, 2023 | archive-url = https://web.archive.org/web/20230616122744/https://www.measuringworth.com/calculators/ppowerus/ | url-status = live }}</ref>
The decline in the value of the U.S. dollar corresponds to [[price inflation]], which is a rise in the general level of prices of goods and services in an economy over a period of time.<ref>[[Olivier Blanchard]] (2000). ''Macroeconomics'' (2nd ed.), Englewood Cliffs, N.J: Prentice Hall, {{ISBN|0-13-013306-X}}</ref> A [[consumer price index]] (CPI) is a measure estimating the average price of consumer goods and services purchased by households. The [[United States Consumer Price Index]], published by the [[Bureau of Labor Statistics]], is a measure estimating the average price of consumer goods and services in the United States.<ref>{{cite web | title = Consumer Price Index Frequently Asked Questions | url = https://www.bls.gov/cpi/questions-and-answers.htm#Question_1 | access-date = October 16, 2018 | archive-date = October 18, 2018 | archive-url = https://web.archive.org/web/20181018015214/https://www.bls.gov/cpi/questions-and-answers.htm#Question_1 | url-status = live }}</ref> It reflects inflation as experienced by consumers in their day-to-day living expenses.<ref>{{cite web | title = Consumer Price Index Frequently Asked Questions | url = https://www.bls.gov/cpi/questions-and-answers.htm#Question_12 | access-date = October 17, 2018 | archive-date = October 18, 2018 | archive-url = https://web.archive.org/web/20181018015214/https://www.bls.gov/cpi/questions-and-answers.htm#Question_12 | url-status = live }}</ref> A graph showing the U.S. CPI relative to 1982–1984 and the annual year-over-year change in CPI is shown at right.
The value of the U.S. dollar declined significantly during wartime, especially during the [[American Civil War]], World War I, and World War II.<ref>{{cite book | title = [[A Monetary History of the United States|A monetary history of the United States, 1867–1960]] | author = [[Milton Friedman]], [[Anna Jacobson Schwartz]] | date = November 21, 1971 | isbn=978-0691003542 | page=546 }}</ref> The [[Federal Reserve]], which was established in 1913, was designed to furnish an "elastic" currency subject to "substantial changes of quantity over short periods", which differed significantly from previous forms of [[high-powered money]] such as gold, national banknotes, and silver coins.<ref>Friedman 189–190</ref> Over the very long run, the prior gold standard kept prices stable—for instance, the price level and the value of the U.S. dollar in 1914 were not very different from the price level in the 1880s. The Federal Reserve initially succeeded in maintaining the value of the U.S. dollar and price stability, reversing the inflation caused by the First World War and stabilizing the value of the dollar during the 1920s, before presiding over a 30% deflation in U.S. prices in the 1930s.<ref name="central-banking-then-and-now">{{cite web |url=https://www.minneapolisfed.org/publications/the-region/central-bankingthen-and-now |title=Central Banking—Then and Now |first1=J. Alfred |last1=Broaddus Jr. |date=September 1, 1993 |website=Federal Reserve Bank of Minneapolis |access-date=October 17, 2018 |archive-date=October 26, 2018 |archive-url=https://web.archive.org/web/20181026144515/https://www.minneapolisfed.org/publications/the-region/central-bankingthen-and-now |url-status=dead }}</ref>
Under the [[Bretton Woods system]] established after World War II, the value of gold was fixed to $35 per ounce, and the value of the U.S. dollar was thus anchored to the value of gold. Rising government spending in the 1960s, however, led to doubts about the ability of the United States to maintain this convertibility, gold stocks dwindled as banks and international investors began to convert dollars to gold, and as a result, the value of the dollar began to decline. Facing an emerging [[currency crisis]] and the imminent danger that the United States would no longer be able to redeem dollars for gold, gold convertibility was finally terminated in 1971 by [[Richard Nixon|President Nixon]], resulting in the "[[Nixon shock]]".<ref name="inflation-historical-perspective">{{cite web |url=http://www.dallasfed.org/research/swe/1993/swe9304b.pdf |title=Controlling Inflation: A Historical Perspective |first1=Kenneth M. |last1=Emery |publisher=Federal Reserve Bank of Dallas |access-date=July 17, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20101207041621/http://www.dallasfed.org/research/swe/1993/swe9304b.pdf |archive-date=December 7, 2010 }}</ref>
The value of the U.S. dollar was therefore no longer anchored to gold, and it fell upon the Federal Reserve to maintain the value of the U.S. currency. The Federal Reserve, however, continued to increase the money supply, resulting in [[stagflation]] and a rapidly declining value of the U.S. dollar in the 1970s. This was largely due to the prevailing economic view at the time that inflation and real economic growth were linked (the [[Phillips curve]]), and so inflation was regarded as relatively benign.<ref name="inflation-historical-perspective"/> Between 1965 and 1981, the U.S. dollar lost two thirds of its value.<ref name="measuring-worth"/>
In 1979, [[Jimmy Carter|President Carter]] appointed [[Paul Volcker]] [[Chairman of the Federal Reserve]]. The Federal Reserve tightened the money supply and inflation was substantially lower in the 1980s, and hence the value of the U.S. dollar stabilized.<ref name="inflation-historical-perspective"/>
Over the thirty-year period from 1981 to 2009, the U.S. dollar lost over half its value.<ref name="measuring-worth"/> This is because the Federal Reserve has targeted not zero inflation, but a low, stable rate of inflation—between 1987 and 1997, the rate of inflation was approximately 3.5%, and between 1997 and 2007 it was approximately 2%. The so-called "[[Great Moderation]]" of economic conditions since the 1970s is credited to monetary policy targeting price stability.<ref name="inflation-historical-perspective2">{{cite web |url=https://www.federalreserve.gov/boarddocs/speeches/2005/20051103/default.htm |first1=Roger W. Jr. |last1=Ferguson |date= November 3, 2005 |website=FRB |title=Monetary Credibility, Inflation, and Economic Growth |access-date=July 17, 2010 |archive-date=August 15, 2010 |archive-url=https://web.archive.org/web/20100815035725/http://federalreserve.gov/boarddocs/speeches/2005/20051103/default.htm |url-status=live }}</ref>
There is an ongoing debate about whether central banks should target zero inflation (which would mean a constant value for the U.S. dollar over time) or low, stable inflation (which would mean a continuously but slowly declining value of the dollar over time, as is the case now). Although some economists are in favor of a zero inflation policy and therefore a constant value for the U.S. dollar,<ref name="central-banking-then-and-now"/> others contend that such a policy limits the ability of the central bank to control [[interest rates]] and stimulate the economy when needed.<ref>{{cite web |url=https://www.frbsf.org/education/teacher-resources/us-monetary-policy-introduction/goals/ |title=What are the goals of U.S. monetary policy? |date=February 6, 2004 |website=Federal Reserve Bank of San Francisco |access-date=October 17, 2018 |archive-date=October 18, 2018 |archive-url=https://web.archive.org/web/20181018043148/https://www.frbsf.org/education/teacher-resources/us-monetary-policy-introduction/goals/ |url-status=dead }}</ref>
==Pegged currencies==
{{div col|colwidth=20em}}
* [[Aruban florin]] (lower&nbsp;value)
* [[Bahamian dollar]] (at&nbsp;par)
* [[Bahraini dinar]] (higher&nbsp;value)
* [[Barbadian dollar]] (lower&nbsp;value)
* [[Belarusian ruble]] (alongside Euro and Russian ruble in currency basket)
* [[Belize dollar]] (lower&nbsp;value)
* [[Bermudian dollar]] (at&nbsp;par)
* [[Bolivian boliviano]] (lower&nbsp;value)
* [[Cambodian riel]] (lower&nbsp;value)
* [[Cayman Islands dollar]] (higher&nbsp;value)
* [[Costa Rican colón]] (lower&nbsp;value)
* [[Cuban peso]] (lower&nbsp;value)
* [[Eastern Caribbean dollar]] (lower&nbsp;value)
* [[East Timor centavo coins]] (at&nbsp;par)
* [[Ecuadorian centavo coins]] (at&nbsp;par)
* [[Eritrean nakfa]] (lower&nbsp;value)
* [[Guatemalan quetzal]] (lower&nbsp;value)
* [[Haitian gourde]] (lower&nbsp;value)
* [[Honduran lempira]] (lower&nbsp;value)
* [[Hong Kong dollar]] (narrow&nbsp;band)
* [[Iraqi dinar]] (lower&nbsp;value)
* [[Jordanian dinar]] (higher&nbsp;value)
* [[Kuwaiti dinar]] (higher&nbsp;value)
* [[Lebanese pound]] (lower&nbsp;value)
* [[Netherlands Antillean guilder]] (lower&nbsp;value, to be replaced by [[Caribbean guilder]] in 2025)
* [[Nicaraguan córdoba]] (lower&nbsp;value)
* [[Nigerian naira]] (lower&nbsp;value)
* [[Omani rial]] (higher&nbsp;value)
* [[Panamanian balboa]] (at&nbsp;par)
* [[Qatari riyal]] (lower&nbsp;value)
* [[Saudi riyal]] (lower&nbsp;value)
* [[Sierra Leonean leone]] (lower&nbsp;value)
* [[Trinidad and Tobago dollar]] (lower&nbsp;value)
* [[United Arab Emirates dirham]] (lower&nbsp;value)
* [[Yemeni rial]] (lower&nbsp;value)
'''Currencies formerly with pegs''' (incomplete list)
* [[Argentine austral]] (1985–1991: fluctuating peg to USD)<ref name="Rafael M. Di Tella and Ingrid Vogel">{{cite web | title = Argentina's Convertibility Plan | author = Rafael M. Di Tella and Ingrid Vogel | date = December 2001 | url = https://www.hbs.edu/faculty/Pages/item.aspx?num=28699 | publisher = Harvard Business School | accessdate = September 24, 2024}}</ref>
* [[Argentine peso]] (1991–2002: 1/USD)<ref name="Rafael M. Di Tella and Ingrid Vogel"/>
* [[Chinese yuan]] (until 2005: 1/USD)<ref name="UNCG">{{cite web | title = Pegged and Crawling Pegged Rate Systems | url = http://web.uncg.edu/dcl/courses/global/unit5/part4.asp | publisher = UNCG | accessdate = September 24, 2024}}</ref>
* [[Indonesian rupiah]] (until 1997: 1/USD)<ref name="Exchange Rate Systems">{{cite web | title = Exchange Rate Systems | url = https://open.lib.umn.edu/principlesofeconomics/chapter/30-3-exchange-rate-systems/ | publisher = University of Minnesota | accessdate = September 24, 2024}}</ref>
* [[Malaysian ringgit]] (1998–2005: 3.80/USD)<ref name="Exchange Rate Systems"/>
* [[Mexican peso]] (1933–1948: 8.65/USD, 1954–1976: 12.5/USD)<ref>{{cite web | title = The Mexican Peso Crisis: The Foreseeable and the Surprise | author = Nora Lustig | date = June 1, 1995 | url = https://www.brookings.edu/research/the-mexican-peso-crisis-the-foreseeable-and-the-surprise/ | publisher = Brookings Institution | accessdate = September 24, 2024}}</ref><ref>{{cite web | title = What's Behind the Volatility of Mexico's Peso? | date = March 9, 2016 | url = https://knowledge.wharton.upenn.edu/article/whats-behind-the-volatility-of-mexicos-peso/ | publisher = Knowledge at Wharton | accessdate = September 24, 2024}}</ref>
* [[South Korean won]] (until 1997: 1/USD)<ref name="Exchange Rate Systems"/>
* [[Thai baht]] (until 1997: 1/USD)<ref name="UNCG"/>
'''Obsolete currencies with USD peg'''
* [[Salvadoran colón]] (lower&nbsp;value)
* [[Zimbabwean bond coins]] and [[Zimbabwean bond notes|bond notes]] (at&nbsp;par)
{{div col end}}
==Exchange rates==
{{see also|U.S. Dollar Index}}
===Historical exchange rates===
<!-- Please double check my work for accuracy. Once someone certifies this, please remove this note.
Note: This is a table of AVERAGE exchange rates. Please do not add rates for the current year, as there has to be data from the whole year in order to have a valid average. -->
<div style="overflow: auto;">
{|class="wikitable"
|+Currency units per one U.S. dollar, averaged over the year<ref>U.S. Federal Reserve: [https://www.federalreserve.gov/releases/g5a/current/ Last 4 years] {{Webarchive|url=https://web.archive.org/web/20181018003147/https://www.federalreserve.gov/releases/g5a/current/ |date=October 18, 2018 }}, [https://www.federalreserve.gov/releases/g5a/20130102/ 2009–2012] {{Webarchive|url=https://web.archive.org/web/20181018003115/https://www.federalreserve.gov/releases/g5a/20130102/ |date=October 18, 2018 }}, [https://www.federalreserve.gov/releases/g5a/20090102/ 2005–2008] {{Webarchive|url=https://web.archive.org/web/20181018043036/https://www.federalreserve.gov/releases/g5a/20090102/ |date=October 18, 2018 }}, [https://www.federalreserve.gov/releases/g5a/20050103/ 2001–2004] {{Webarchive|url=https://web.archive.org/web/20181018003136/https://www.federalreserve.gov/releases/g5a/20050103/ |date=October 18, 2018 }}, [https://www.federalreserve.gov/releases/g5a/20010109/ 1997–2000] {{Webarchive|url=https://web.archive.org/web/20181018003207/https://www.federalreserve.gov/releases/g5a/20010109/ |date=October 18, 2018 }}, [https://www.federalreserve.gov/releases/g5a/19970107/ 1993–1996] {{Webarchive|url=https://web.archive.org/web/20181018003152/https://www.federalreserve.gov/releases/g5a/19970107/ |date=October 18, 2018 }};
Reserve Bank of Australia: [https://www.rba.gov.au/statistics/historical-data.html#exchange-rates 1970–present] {{Webarchive|url=https://web.archive.org/web/20181023015005/https://www.rba.gov.au/statistics/historical-data.html#exchange-rates |date=October 23, 2018 }}</ref><ref>{{Cite web |url=http://www.x-rates.com/historical/ |title=2004–present |access-date=July 24, 2014 |archive-date=July 23, 2014 |archive-url=https://web.archive.org/web/20140723044715/http://www.x-rates.com/historical/ |url-status=live }}</ref><ref>{{cite web|title=FRB: Foreign Exchange Rates&nbsp;– G.5A; Release Dates|url=https://www.federalreserve.gov/releases/g5a/|access-date=July 23, 2014|publisher=Board of Governors of the Federal Reserve System|archive-date=August 3, 2014|archive-url=https://web.archive.org/web/20140803055253/http://www.federalreserve.gov/releases/g5a/|url-status=live}}</ref><ref>{{Cite web |title=Exchange rates |url=https://data.oecd.org/conversion/exchange-rates.htm |website=[[OECD]]}}</ref>
! Currency units !! 1970<ref name=":0" group="lower-roman">Mexican peso values prior to 1993 revaluation</ref>!! 1980<ref name=":0" group="lower-roman" />|| 1985<ref name=":0" group="lower-roman" />!! 1990<ref name=":0" group="lower-roman" />!! 1993 !! 1999  !!  2000  !!  2001  !!  2002  !!  2003  !!  2004  !!  2005  !!  2006  !!  2007 !! 2008 !! 2009 !! 2010 !! 2011 !! 2012 !! 2013 !! 2014 !! 2015 !! 2018<ref>{{cite web |url=https://www.transfermate.com/en/currency-converter-historic-exchange-rates.asp |title=Historical Exchange Rates Currency Converter |website=TransferMate.com |access-date=September 10, 2016 |archive-date=September 18, 2016 |archive-url=https://web.archive.org/web/20160918044948/https://www.transfermate.com/en/currency-converter-historic-exchange-rates.asp |url-status=live }}</ref>
|-
| [[Euro]] ||&nbsp;— ||&nbsp;— ||&nbsp;— || &nbsp;— || &nbsp;— || 0.9387 || 1.0832 || 1.1171 || 1.0578 || 0.8833 || 0.8040 || 0.8033 || 0.7960 || 0.7293 || 0.6791 || 0.7176 || 0.6739 || 0.7178 || 0.7777 || 0.7530 || 0.7520 || 0.9015 || 0.8504
|-
| [[Japanese yen]] || 357.6 || 240.45 || 250.35 || 146.25 || 111.08 || 113.73 || 107.80 || 121.57 || 125.22 || 115.94 || 108.15 || 110.11 || 116.31 || 117.76 || 103.39 || 93.68 || 87.78 || 79.70 || 79.82 || 97.60 || 105.74 || 121.05 || 111.130
|-
| [[Pound sterling]] || 8[[Shilling (British coin)|s]]&nbsp;4[[Penny (British pre-decimal coin)|d]]<br>=0.4167 || 0.4484<ref name="austats" group="lower-roman">[https://www.rba.gov.au/statistics/historical-data.html 1970–1992] {{Webarchive|url=https://web.archive.org/web/20181023015005/https://www.rba.gov.au/statistics/historical-data.html |date=October 23, 2018 }}. '''1980''' derived from AUD–USD=1.1055 and AUD–GBP=0.4957 at end of Dec 1979: 0.4957/1.1055=0.448394392; '''1985''' derived from AUD–USD=0.8278 and AUD–GBP=0.7130 at end of Dec 1984: 0.7130/0.8278=0.861319159.</ref>|| 0.8613<ref name="austats" group="lower-roman" />|| 0.6207 || 0.6660 || 0.6184 || 0.6598 || 0.6946 || 0.6656 || 0.6117 || 0.5456 || 0.5493 || 0.5425 || 0.4995 || 0.5392 || 0.6385 || 0.4548 || 0.6233 || 0.6308 || 0.6393 || 0.6066 || 0.6544 || 0.7454
|-
| [[Swiss franc]] || 4.12 ||1.68 || 2.46<ref name="SAmeasuringW">"[https://www.forecast-chart.com/usd-swiss-franc.html Exchange Rates Between the United States Dollar and the Swiss Franc] {{Webarchive|url=https://web.archive.org/web/20190330093753/https://www.forecast-chart.com/usd-swiss-franc.html |date=March 30, 2019 }}." Measuring Worth. Retrieved October 17, 2018.</ref>|| 1.39 || 1.48  || 1.50  || 1.69    || 1.69 || 1.62 || 1.40 ||1.24 ||1.15 || 1.29 ||1.23 ||1.12 || 1.08 || 1.03 || 0.93 || 0.93 || 0.90 || 0.92 || 1.00 || 0.98
|-
| [[Canadian dollar]]<ref>[https://web.archive.org/web/20150103130811/http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=31 1977–1991]</ref>|| 1.081 || 1.168 || 1.321 || 1.1605 || 1.2902 || 1.4858 || 1.4855 || 1.5487 || 1.5704 || 1.4008 || 1.3017 || 1.2115 || 1.1340 || 1.0734 || 1.0660 || 1.1412 || 1.0298 || 0.9887 || 0.9995 || 1.0300 || 1.1043 || 1.2789 || 1.2842
|-
| [[Mexican peso]]<ref>[https://web.archive.org/web/20141230104547/http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=17 1976–1991]</ref>|| 0.01250–0.02650<ref name=":1" group="lower-roman">Value at the start of the year</ref>|| 2.80<ref name=":1" group="lower-roman" />|| 2.67<ref name=":1" group="lower-roman" />|| 2.50<ref name=":1" group="lower-roman" />|| 3.1237 || 9.553 || 9.459  || 9.337 ||  9.663 || 10.793 || 11.290 || 10.894 || 10.906 || 10.928 || 11.143 || 13.498 || 12.623 || 12.427 || 13.154 || 12.758 || 13.302 || 15.837 || 19.911
|-
| [[Renminbi|Chinese Renminbi]]<ref>[https://web.archive.org/web/20081003050230/http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=8 1974–1991, 1993–1995]</ref>|| 2.46 || 1.7050 || 2.9366 || 4.7832 || 5.7620 || 8.2783 || 8.2784 || 8.2770 || 8.2771 || 8.2772 || 8.2768 || 8.1936 || 7.9723 || 7.6058 || 6.9477 || 6.8307 || 6.7696 || 6.4630 || 6.3093 || 6.1478 || 6.1620 || 6.2840 || 6.383
|-
| [[Pakistani rupee]] || 4.761 || 9.9 || 15.9284 || 21.707 || 28.107  || 51.9  ||  51.9 || 63.5 || 60.5 || 57.75 || 57.8 || 59.7 || 60.4 || 60.83 || 67 || 80.45 || 85.75 || 88.6 || 90.7 || 105.477 || 100.661 || 104.763 || 139.850
|-
| [[Singapore dollar]] ||&nbsp;— ||&nbsp;— || 2.179 || 1.903 || 1.6158 || 1.6951 || 1.7361  || 1.7930  ||  1.7908 || 1.7429 || 1.6902 || 1.6639 || 1.5882 || 1.5065 || 1.4140 || 1.4543 || 1.24586 || 1.2565 || 1.2492 || 1.2511 || 1.2665 || 1.3748 || 1.343
|-
|[[South Korean won]]
|310.556
|607.717
|870.020
|707.766
|802.538
|1189.439
|1130.362
|1290.790
|1251.602
|1191.646
|1146.249
|1024.328
|955.341
|929.376
|1100.126
|1277.246
|1156.460
|1108.233
|1126.807
|1094.983
|1052.840
|1130.953
|1100.163
|-
|}
</div>
{{multiple image
| align     = center
| direction = horizontal
| width = 300
| footer = US dollar exchange rates graphs against [[Euro]] (from 1999), [[Pound sterling]] and [[Japanese yen]] (both from 1990)<br/>(on the first two - the amount of dollars per one euro and pound, on the third - the amount of yens per one dollar)
| image1 = EUR-USD v2.svg
| alt1 =
| caption1 =
| image2 = GBP-USD v2.svg
| alt2 =
| caption2 =
| image3 = JPY-USD v2.svg
| alt3 =
| caption3 =
}}
=== Current exchange rates ===
{{Exchange Rate|USD|CAD|TWD|KRW|JPY|style=navbox}}
==See also==
* [[Counterfeit United States currency]]
* [[Dedollarisation]]
* [[Currency substitution]]
* [[International use of the U.S. dollar]]
* [[List of the largest trading partners of the United States]]
* [[Monetary policy of the United States]]
* [[Petrodollar recycling]]
* [[Strong dollar policy]]
* [[U.S. Dollar Index]]
* [[Virtual currency]]
== Notes ==
{{Notelist}}
{{Reflist|35em|group=lower-roman}}
== References ==
{{Reflist}}
== Further reading ==
{{refbegin}}
* {{cite book |last= Prasad |first= Eswar S. |year= 2014 |title= The Dollar Trap: How the U.S. Dollar Tightened Its Grip on Global Finance |location= Princeton, NJ |publisher= [[Princeton University Press]] |isbn= 978-0-691-16112-9 }}
{{refend}}
== External links ==
{{Sister project links |collapsible = true }}
* [https://www.bep.treas.gov/ U.S. Bureau of Engraving and Printing] {{Webarchive|url=https://web.archive.org/web/19970530190833/http://www.bep.treas.gov/ |date=May 30, 1997 }}
* [https://www.fiscal.treasury.gov/fsreports/rpt/treasBulletin/treasBulletin_home.htm U.S. Currency and Coin Outstanding and in Circulation]
* [https://www.frbsf.org/education/teacher-resources/american-currency-exhibit/ American Currency Exhibit at the San Francisco Federal Reserve Bank] {{Webarchive|url=https://web.archive.org/web/20230607130449/https://www.frbsf.org/education/teacher-resources/american-currency-exhibit/ |date=June 7, 2023 }}
* [https://www.measuringworth.com/uscompare/ Relative values of the U.S. dollar, from 1774 to present]
* [http://www.historicalstatistics.org/Currencyconverter.html Historical Currency Converter]
* [http://www.uspapermoney.info/ Summary of BEP Production Statistics]
* [https://www.uscurrency.gov The U.S. Currency Education Program]
===Images of U.S. currency and coins===
* [https://www.uscurrency.gov/denominations U.S. Currency Education Program page with images of all current banknotes]
* [https://www.usmint.gov/news/image-library U.S. Mint: Image Library]
* [http://www.bis-ans-ende-der-welt.net/USA-B-En.htm Historical and current banknotes of the United States] {{in lang|en|de}}
{{Clear}}
{{Coinage (United States coin)}}
{{US currency and coinage}}
{{Money and central banking within the contemporary United States (pre–1913)}}
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