Posted in Finance, Accounting and Economics Terms, Total Reads: 252
USD stands for the United States Dollar and as is implied, is the national currency of the United States, and is represented using $. It is quite often simply referred to as a “Dollar”. Most importantly, it is considered a benchmark currency across the world – it is the currency that is used the most in transactions across countries with different currencies. This is why it is sometimes referred to as “fiat” currency and as a consequence, is also the world’s most dominant reserve currency.
There are a lot of currencies that use the USD alongside their own currency, there are also others that use the USD as an official currency.
USD was based on a gold standard until 1968 following which pegs to gold were put in place until 1975. In 1975, the USD was removed from the gold standard and then allowed to float freely.