The United States dollar, commonly referred to as the USD or simply the dollar, is the official currency of the United States of America. It is recognized worldwide as one of the most important and widely used currencies in international commerce and finance.
The United States dollar is subdivided into 100 smaller units called cents. The coins circulating in the United States include the penny (1 cent), nickel (5 cents), dime (10 cents), and quarter (25 cents), while the paper currency includes the $1, $5, $10, $20, $50, and $100 bills.
The U.S. dollar, as a fiat currency, holds no intrinsic or physical value but instead derives its worth from the trust placed in it by individuals and institutions both within and outside the United States. It is issued and regulated by the Federal Reserve System, the central banking system of the United States.
Due to the stability and global position of the U.S. economy, the United States dollar serves as a prominent reserve currency across the globe. It is used as a benchmark for the exchange rates of many other currencies and is frequently employed in international trade and financial transactions, making it a vital component of the global financial system.
Overall, the United States dollar serves as a symbol of economic strength, stability, and global influence, holding a prominent position in the realm of international finance and trade.
