The U.S. dollar is the official currency of the United States. According to official data from the Bank for International Settlements (BIS) in its three-year report of 2007 shows that the level of participation of the U.S. dollar in the forex market is 86.35%, taking into account a total 200% because the transactions involve buying and selling currencies.
While the U.S. dollar is the currency of the United States and the monopoly of the issuance of U.S. dollar is in the hands of the Central Bank, namely, the Fed, there are other states that implemented in your country use the U.S. dollar as currency.
This is due largely to stability throughout history showed the U.S. dollar. For example in El Salvador and Panama, we see that has been adopted as the official currency the U.S. dollar.
Dollar for the moment remains a safe haven against inflation so as well in times of crisis.
Bear in mind also that the oil traded in U.S. dollars and gold is also listed. It follows a key role of the U.S. dollar in the transaction of these commodities.
The ISO 4217 code for the U.S. dollar is USD. ISO 4217 came to encode all currencies worldwide, and really simplified transactions worldwide, by encoding a coin simply three letters.
Several States referred to their respective currencies such as dollars, so we find that in Canada there is the Canadian dollar in New Zealand there is the New Zealand dollar, Australia’s legal tender is the Australian dollar. Thus the ISO 4217 came to remove uncertainty in business transactions, because if we talk about the USD we mention only the U.S. dollar and another currency, just imagine a two merchants in Australia and one in the U.S., and both single agreed to pay in dollars of goods sold. Thus there are no more misunderstandings in the world trade.
On the other hand, we can find tickets U.S. $ 1, 2, 5, 10, 20, 50 and 100 dollars.
This article is supplied by PLANETAFOREX.COM
