Interesting facts about the US Dollar (2024)

FAQs

What are some interesting facts about the dollar? ›

US dollar bills are made of a special 75% cotton and 25% linen blend. This helps them stay strong even after being folded countless times – much more than an average piece of paper. However, according to the Federal Reserve, a US dollar is only in circulation for about 6 years.

Since the end of World War II, the dollar has been the world's most important means of exchange. It is the most commonly held reserve currency and the most widely used currency for international trade and other transactions around the world.

American paper currency comes in seven denominations: $1, $2, $5, $10, $20, $50, and $100. The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation.

Federal Reserve note paper is one-fourth linen and three-fourths cotton, and contains red and blue security fibers. The $1 Federal Reserve note was issued in 1963, and its design—featuring President George Washington and the Great Seal of the United States—remains unchanged.

Another key factor to the dollar's relative strength is the Federal Reserve, which sets interest rates to avoid high inflation and maintain economic stability. Keeping inflation rates low (the Fed aims for a long-run annual rate of 2%) prevents the dollar from losing too much value over time.

Despite uncertain macro conditions, the dollar has continued to demonstrate strength — largely thanks to sticky inflation, a resilient U.S. economy and year-to-date highs in yields. Indeed, in a display of U.S. exceptionalism, the greenback has gained against just about every other major currency in 2024.

Japan continues to be a popular choice, but Vietnam and South Korea stand as solid alternatives among numerous countries in Asia with favorable exchange rates for the US dollar. Closely following in value are South American countries: Argentina and Chile are among those offering the biggest luxury bang.

U.S. currency is NOT made of plastic. It is made of special type of paper which is primarily cloth. And, yes, it is waterproof enough to go through a machine wash. It certainly would not disintegrate like a sheet of ordinary paper.

The federal government began issuing paper currency during the American Civil War. As photographic technology of the day could not reproduce color, it was decided the back of the bills would be printed in a color other than black. Because the color green was seen as a symbol of stability, it was selected.

What is the US dollar based on? ›

In 1971, President Nixon officially ended the gold standard and made the United States dollar a fiat currency. Fiat means “let it be done” in Latin. Therefore, a “fiat currency” derives its value from government decree rather than any physical commodity.

The first $1 notes (called United States Notes or "Legal Tenders") were issued by the federal government in 1862 and featured a portrait of Secretary of the Treasury Salmon P.

The American one dollar bill has a picture of George Washington.

The Five Dollar bill also has some interesting hidden items:

Next, much like the Ten Dollar bill, the Five also has "micro text" printed near Lincoln's name. Finally, take a look at the roof of the Lincoln Memorial on the back of the Five Dollar bill. Several state names are printed there.

Believe it or not, the $2 bill has been around since 1776, when it was first issued during the American Revolution. While other denominations have come and gone, the $2 bill has remained in circulation, making it the oldest denomination in our history.

The First $100 Bill Was Printed in 1914

Even though the first $100 "Interest-Bearing Notes" were issued in 1861, the first $100 Federal Reserve Notes -- aka money as it's currently known -- were printed with Benjamin Franklin gracing the front, just like it is today.

On this day in 1776, a committee led by Thomas Jefferson recommended to the Continental Congress that the U.S. create a basic unit of currency called the “dollar.” The U.S. dollar derived its name from a Spanish and Austrian coin originally called the “thaler”—named for Joachimsthal, a silver-mining town in Bohemia.