United States Dollar

Overview & Economic Role

The United States Dollar (USD) is the official currency of the United States and its territories. As the world's primary reserve currency, it is held by almost every central bank globally. The USD is the most traded currency in the foreign exchange market, involved in approximately 88% of all daily currency trades.

The Federal Reserve System, often referred to as "The Fed," acts as the central bank. It manages monetary policy with a dual mandate to promote maximum employment and stable prices. Because many commodities, including oil and gold, are priced in dollars, the USD exerts significant influence on global trade dynamics.