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Sabtu, 05 Agustus 2017

Getting More Information About American Currency

By Jamal D White


US dollar is one of the most influential currencies in the world, thus there are a lot of factors that affect the currency and moreover each factor associated with it is important in order to establish the value of the currency. There are several economic analysts that look to maintain a balance between the investment and trading considering them as an important factor in determining the value of the currency.

US dollar is also among the currencies that have made its reputation in the forex market too, where it is known as USD and also popular as one of the leading currencies in the world. The US dollar is currently available in notes and both coins too, people can avail it for the bank. There is different denomination of dollars available, which includes, dime being one tenth of a dollar, cent being one hundredth of a dollar, mill being one thousandth of a dollar.

Dollar is the first ever currency used for transaction in US and it is probably older than the American independence itself. The dollar was introduced in 1792 by the United States, when it was issued for the first time in resemblance to the Spanish Dollar. Before independence dog dollars and lion dollars were referred to as coins and later as time passed dollar was then referred to as silver and gold standards.

As the civil war began in 1862, the use of paper money was made, during this era the money was known as continental currency. As the civil war ended the use of gold and silver coins were prohibited and seized. The use of US dollar was then regulated all over the international currency markets in the early 70s. The largest ever US notes where printed during mid-30s but it were later replaced by smaller notes. Use of cotton fibre paper was made to prepare the notes.

The impact of US dollar is also seen in the forex market, it is the currency used for trading all around the world. US dollar, apart from representing the leading currency reserve in the world, is also referred to as a standard unit for commodities sold nationally and internationally.

Foreign Companies selling in products at cheaper rate in a particular country in comparison to the products produced in that country does affect the economy status of the country, thus decreasing the value of the currency of that country. As the decrease in the demand for the country's currency, it does lower the actual value of the currency.

In respect to financial markets, the demand of US dollar in terms of currency outside the country, establishes the value of American currency. Likewise as the demand of US dollar increases in the international market, the value of the US dollar also increases and vice versa. Similarly, as the regulation of US dollar decreases the value of the dollar also falls.

Federal Reserve Bank did make certain changes in their policies, in order to deal with the deflation caused due to Great depression. Later after the World War II and decline of Bretton Woods's system, the Federal Reserve was again given the responsibility of the maintenance of the value of American currency. The FR issued new notes that were regulated throughout the country to facilitate new debts.




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