How Many Countries Are There That Use Dollar As a Currency?

Home USA 25 January 2018

How Many Countries Are There That Use Dollar As a Currency?

 

The dollar is one of the most popular currencies in the world. Almost every man had heard the dollar term at least once in their lives. In addition to this, the currency has the most share in the global markets with forty-seven percent. There are many different countries that use the dollar as a currency apart from the United States. In case you wonder the amount of the countries that use this currency, then you can learn the answer in this article. But before that, let us provide you some facts about this currency.

 

Did you know that the dollar world is not invented by the United States government? This currency is the changed version of Thaler which was used as German currency during the sixteenth century. The dollar is derived from Dolera which represents the silver coins created by the Spanish kings. The dollar became the official currency of the United States with the decision taken on June 22, 1776. It is one of the new currencies in the world. When the United States achieved its independence the government issued silver coins with the name of the dollar and its weight determined as 24,3 grams in 1786.

 

In 1792, bimetallism adopted and gold is included within the scope of the definition. Thus one dollar was equal to 24,05 pure silver and 603,8-milligram pure gold. 100 cents make up one dollar and the Canadian Dollar which is derived from the United States dollar has the same system as well. Then the definition of the currency changed in 1837. After the discovery of the gold in California in 1849, the dollar began to be issued with gold. However, this money which was really small in size were not spread a lot and become popular.

 

Then the government adopted the gold bullion system by handing over all of the gold money to the government. The gold and dollar parity determined in these times. One ounce gold (approximately 31 grams) determined as thirty-five dollars. Then the government took a decision to ban the conversion of the dollars into gold. The gold reserves were determined to be used only in foreign demands. Today, many of the international good is bought and sold with this currency. Even two different countries which do not use this currency make their agreements and buy & purchase operation on the basis of the dollars.

 

It will be safe to say that dollar is dominating the world and it is being used by many countries. People can even make living by selling and buying dollar by taking the advantage of the currency differences. Now let’s talk about the exact answer to our question. This currency is preferred as an official currency in 25 countries including the United States itself. However, most of these countries are located on the same continent with the United States and they do not have enough economic freedom. These countries include 6 Caribbean nations, 8 African states, and 10 foreign countries. Needless to say, pictures of former American presidents located on the paper dollars.



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