National Dollar Day

National Dollar Day is celebrated every year on August 8 in the United States. It honors the day when the U.S. monetary system was created. As of early 2021, there was $2.10 trillion in U.S. currency in circulation. The dollar is widely used and accepted in many countries. Keep reading to learn more about the history of this important currency.

History of National Dollar Day

The creator of National Dollar Day is unknown, but the day celebrates when the U.S. monetary system was established in 1786. On that day, they decided the value of different coins and how they would be made, like setting gold at $10 and silver at $1.

Today, paper money dollars are called Federal Reserve Notes, and their design was based on the Spanish dollar. The $1 bill hasn’t been redesigned in over 50 years to prevent counterfeiting. The first paper dollar printed in 1862 featured Abraham Lincoln’s Secretary of the Treasury, Salmon P. Chase. In 1869, George Washington first appeared on the $1 bill. Crane & Company has been supplying the paper for U.S. currency for hundreds of years.

The dollar is full of interesting details, like a tiny bird above the right number one on the front, and the pyramid on the back, which is part of the Great Seal of the United States. The unfinished top of the pyramid symbolizes a country that is still growing. Opposite the pyramid is an eagle, representing both war and peace, with a constellation of 13 stars and a shield with 13 stripes above the eagle’s head.

Today, the U.S. dollar is widely used in international transactions and is the world’s main reserve currency.

National Dollar Day timeline

National Dollar Day FAQs

Why is the dollar a powerful currency?
The U.S. dollar is strong because the world trusts that the United States can meet its financial obligations. This trust makes the dollar the most powerful currency and likely to stay that way for a long time.

Do all countries accept U.S. dollars?
Thanks to the dollar’s strength, over 65 countries link their currencies to it. Additionally, five U.S. territories and seven other countries use the U.S. dollar as their official currency.

Who controls the circulation of money in the United States?
The U.S. Federal Reserve manages the money supply in the country. It doesn’t print the currency itself but decides how much money the Treasury Department should print each year.

How to Observe National Dollar Day

1. Spend a dollar
Been thinking about buying something for yourself but keep putting it off? National Dollar Day is a great time to spend a dollar guilt-free. If you don’t want to spend it on yourself, consider buying a meal for someone in need and help make a difference.

2. Analyze a dollar
Have you ever really looked at a dollar, both front and back? National Dollar Day is a perfect opportunity to take a close look at a dollar bill and discover all the symbols and details you might not have noticed before.

3. Save a dollar
National Dollar Day could be the perfect time to start that savings plan you’ve been delaying. You can begin by saving just a few dollars a day and watch how much it adds up by the end of the year.

5 Fascinating Facts About The Dollar

1. Cheap production cost
It costs less than five cents to produce a $1 bill, making it one of the cheapest to produce.

2. Dollar size
The dollar measures 2.61 inches wide and 6.14 inches long.

3. Dollar weight
The dollar weighs about one gram and is .0043 inches thick.

4. Dollar material
The dollar is made from a blend of 75% cotton and 25% linen.

5. Dollar circulation
On average, a dollar stays in circulation for about six years.

Why National Dollar Day is Important

A. The dollar is a global currency

The dollar became the world’s reserve currency at the Bretton Woods Conference. It plays a key role in global trade and is widely used internationally.

B. Exchange rate regime

The dollar is so influential that many countries tie the value of their own currency to it, using the dollar as a reference in their exchange rate systems.

C. Important for the economy

A sudden collapse of the dollar could cause global economic chaos, leading to higher import prices and inflation.