Travel Money

The Current Value of USD Dollars

If you’re going to the US anytime soon, you’ll need to exchange your country’s native currency into USD dollars. First let’s cover a few things about the dollar. It is the official currency of the United States, and over 85% percent of world wide transactions use it as method of payment.

Have a look at our great conversion rates for USD:

It’s also important to note that there are twenty five other types of currencies pegged to the dollar. Here are some interesting facts about the dollar:

The value of the dollar is measured by the demand for U.S. treasury bills along with notes and bonds.
USD dollars are held by governments in foreign currency reserves because they have excess cash. When certain countries export more than they import, they will end up with excess monies.
The value of the dollar continues to slowly decline and foreign governments are making the decision to change their currency reserves from USD currency to something that proves to be more secure.
As compared to USD dollars, the value of Euros has risen substantially. This has been a motivating factor for governments to make the switch and hold their federal reserves in the form of Euros instead. And although this is happening the amount is more than fifty percent less than how much money is still held in dollars.
When the dollar is strong, it makes purchasing foreign goods less expensive to the purchasers. This greatly benefits businesses that are importing things into the U.S.

With all of the good things noted about USD dollars why is their value dropping and why are businesses and governments backing away from their use? The United States has a debt of over twelve trillion dollars. It’s frightening to consider what this will do to the value of the dollar over time. And when the value of the dollar drops, it will aid the recovery of the American economy but it’s a large threat to companies overseas regarding their foreign competition. A large benefit for the United States (because of the weakened value of the dollar) is that the unemployment rate hasn’t gone down as much as it could. If the dollar didn’t hold a lessened value, analysts say the unemployment rate would be much worse.

To save as much as possible, use a FairFX Dollar Card for the best exchange rates. Alternatively, if you are worried about buying Dollars with the Pound at its current level, get an Anywhere Card, and do your Dollar conversion at the point of sale, so you don’t have to gamble with your money. Click below to find out more.

Friday 12 March 2010, 09:26am

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