The first U.S. Dollar, as it is known today, was printed in 1914 upon the creation of the Federal Reserve Bank. Less than six decades later, the dollar officially became the world’s reserve currency. However, its ascendancy to the throne actually began not long after the ink was dry on that first printing in 1914.
KEY TAKEAWAYS
The first U.S. dollar, as it is known today, was printed in 1914 upon the creation of the Federal Reserve Bank. During World War II, the U.S. supplied the Allies and got paid in gold propelling the U.S. to the largest holder of gold. After the war, countries linked their currencies to the dollar, which was linked to gold. The gold standard ended, but the dollar's reserve status remained. Today, more than 61% of all foreign bank reserves are denominated in U.S. dollars, and nearly 40% of the world's debt is in dollars.