The dollar today
Is the US dollar still the global currency?
Over all its highs and lows, the dollar has remained the de facto global currency with over 65% of all dollars in circulation being used outside of the US. It is used in 50% of international trade and is included in every major forex pair, accounting for 80% of forex trading.
More than a third of countries peg their currency to the dollar. While it is no longer backed by gold, it is backed by the largest economy in the world. It is used as the reserve currency of most central banks as a hedge against inflation, and in 2017, the banks of Germany, France and the UK held more liabilities in dollars than their own currencies.
Which countries use the dollar?
The table below shows the five US territories and seven sovereign nations that use USD as their official currency of exchange.