The currency of the United States. Currency code (USD)
Per the BIS’s 2019 Triennial Central Bank Survey of Foreign Exchange ( the most recent as of 2022), produced every 3 years, the US dollar remains the world’s most dominant currency. It was on one side of 88% of all forex trades in April 2019. Coming in second was the euro, being traded globally on 32% of all trades.
The Federal Reserve of the United States, through enacting it’s monetary policies, can affect the USD money supply by:
- increasing and decreasing interest rates,
- modifying USD reserve requirements that banks must adhere to, and
- buying and selling government securities on the open market,
all in an effort to promote and boost economic activity.
The US dollar is the reserve currency of the world. China is known to hold the largest USD reserves of any foreign country in the world.