National Dollar Day is observed annually on August 8 in the United States. This observance marks an important event in the history of the country when the monetary system was established. In fact, in early 2021, the U.S. currency in circulation amounted to $2.10 trillion. The dollar is used as an exchange and accepted in multiple countries. Read on to know more about the history of this extremely important currency.
History of National Dollar Day
While the creator of National Dollar Day remains unknown, this observance marks the day the U.S. monetary system was established in 1786. It was on that day that they set the value of various coins, how they would be made, e.t.c. They even set the value of gold at $10 apiece and silver at $1 apiece.
Paper money dollars are currently known as Federal Reserve Notes and their designs were based on the Spanish dollar. In fact, the single dollar bill has not been redesigned in more than 50 years to prevent counterfeiting. The first paper dollar that was printed in 1862, had Abraham Lincoln’s Secretary of the Treasury, Salmon P. Chase, printed on it. Later in 1869, George Washington first appeared on the $1 bill. Interestingly, Crane & Company has supplied paper for U.S. currency for hundreds of years.
The dollar is quite interesting and is decorated with signs and symbols. One can find a tiny bird above the right number one on the face side of the dollar. Furthermore, the pyramid on the back of the bill is part of the Great Seal of the United States. The unfinished top portrays a country that is growing and expanding. Opposite the pyramid, there is an eagle which represents war and peace. Additionally, one can even observe a constellation with 13 stars and a shield with 13 stripes above the eagle’s head.
In current times, the United States dollar is used in a plethora of international transactions and is also the world’s primary reserve currency.
National Dollar Day timeline
The monetary system is established.
The United States Mint is formed.
The first dollar coin, the Flowing Hair Dollar, is minted.
The United States prints its first dollar bill.
National Dollar Day FAQs
Why is the dollar a powerful currency?
The United States holds the trust of the world and confidence for its ability to pay its obligations. Owing to this, the dollar is the strongest world currency and will remain so for years to come.
Do all countries accept U.S. dollars?
Owing to the financial strength of the dollar, more than 65 countries peg their currencies to the U.S. dollar. Five U.S. territories and seven sovereign countries use the dollar as their official currency of exchange.
Who controls the circulation of money in the United States?
It is the U.S. Federal Reserve that controls the supply of money in the United States. However, it doesn’t actually print currency bills but determines how many bills are printed by the Treasury Department each year.
How to Observe National Dollar Day
Spend a dollar
Have you been meaning to buy something for yourself but have put it off? Use National Dollar Day to spend a dollar without any guilt. If you don’t want to spend it on yourself, maybe you can buy a meal for a homeless or needy person and contribute to the wellbeing of society.
Analyze a dollar
Have you observed a dollar properly back and front? There are many symbols on it. On National Dollar Day, take that dollar bill out of your wallet and carefully analyze it and see what you find.
Save a dollar
You can use National Dollar Day as a way to start that saving scheme you’ve been putting off. You can start small and invest a few dollars a day and see how much you end up saving at the end of the year.
5 Fascinating Facts About The Dollar
Cheap production cost
It takes approximately under a nickel per note to produce the $1 bill making it one of the cheapest.
The dollar is 2.61 inches in width and 6.14 inches long.
The dollar weighs approximately one gram and is .0043 inches thick.
The dollar is made from a blend of paper, which is approximately 75% cotton and 25% linen.
A dollar may spend around six years in circulation on average.
Why National Dollar Day is Important
The dollar is a global currency
The dollar was formally established as the global reserve currency at the Bretton Woods Conference. It is an important currency in the world and is widely used in international trade.
Exchange rate regime
The dollar holds an eminent position in the globe. It is so powerful that the dollar is widely used as an exchange rate regime where countries value their home currency to that of the dollar.
Important for the economy
A sudden collapse in the dollar may lead to global economic turmoil. It could lead to an increase in import prices thus causing inflation.
National Dollar Day dates