The Origin of the United States Dollar Currency Symbol
Almost everyone knows that the United States (US) dollar currency is the strongest in the world. But not everyone knows about the origin of this currency symbol.
United States Dollar (USD) or US dollar is the currency in Uncle Sam's country with the symbol $. Initially, the dollar was in the form of coins and was widely used by Spanish Americans in the 16th to 19th centuries.
At that time, the Treasury through the United States Mint minted the first dollar coin. Physically, US silver coins are similar to Spanish dollar coins.
The US at that time, not only circulated the country's own dollar currency. But circulated side by side with Spanish, Mexican, Dutch, and British currencies.
The US dollar became the official currency in 1792. In 1857, the US Congress decided that they would end the status of foreign coins as legal tender.
In 1944, the developed countries of the world entered into the Bretton Woods Agreement, reported by TheBalance.com. The treaty declared that the US dollar became the global currency.
This agreement drastically changed US business. Even the US dollar has become very strong in the world.
Not only the US dollar has a long history. The symbol of the US dollar ($) is the same. Even $ became a part of pop culture. Like the $ symbol which became an emoji in short messages and Kesha who had written her name with Ke$ha.
To understand where the $ comes from, here are several versions of the origin of the US dollar symbol:
1. Absorption from the Kingdom of Bohemia
In 1520 the Kingdom of Bohemia released silver coins called Joachimsthalers or called thalers. The idea of the currency was initiated by Count Hieronymus Schlick from Joachimsthal, a mining area in Joachimsthal (currently in the Barnim district, Brandenburg, Germany), thought-rakyat.com (10/02/2020).
The spread of the Bohemian thalers is quite massive and wide. So that within 10 years, Joachimsthal became the largest silver mine in Europe. And European rulers in Rome, Denmark, Norway, Switzerland, and many others used the word thalers to describe their currency.
The difference is in the way of calling and writing thalers. For example, the Roman currency was called the Reichsthalers, and the Dutch, who had occupied the US, had the Leeuwendaler currency. In the US, thalers are absorbed into dollars.
2. Originally from the Kingdom of Spain
There is another version of the origin of the US dollar symbol. This time it comes from the Kingdom of Spain. In the 18th and 19th centuries, the kingdom had silver Spanish dollar (Peso) coins depicting the pillars of Hercules, BBC.com (06/06/2019). The pillars of Hercules are in the form of two vertical rods (||) and the cloth band forms the letter S.
Peso or peso de ocho reales spread in the colonies of Spain and England, including the US. The peso was the legal medium of exchange in the US until 1857. When it was written, the peso became Ps but eventually only the letter S remained. Plus, the Spanish dollar is equivalent to the US dollar.
The $ symbol is also believed to have come from Oliver Pollock. He was a US Revolutionary War trader and financier who is often credited with the creation of the $ symbol in 1778. Archibald Binny (an anti-British Scotsman) printed the first $ symbol with a Philadelphia printing press in the 1790s.
Because the US dollar currency is very strong, then not a few who use it as a means of investment. This investment is also known as foreign exchange (forex).
According to Eko Endarto, a financial planner from Financial Consulting, US dollar investments should be reserved for investors who have short-term needs for this currency, Detik.com (28/09/2019). Such as frequent trips abroad, import product business, or planning to study in the US.
Before investing, there are four things that must be understood, namely:
1. Learn the mechanics of foreign exchange investment. Such as understanding the buying and selling rates, the allocation of investment funds per month, how long to keep, and how to make a profit.
2. Keep US dollars in a safe place. This is to prevent the money from being folded, wrinkled, or changing color (yellow paper). For example, in a safe or deposit service at a bank. If the condition of the money changes, the selling value will decrease.
3. US dollar investment is suitable for short term or no more than 12 months.
4. Buy US dollar currency in a trusted place. Like money changers and banks.
The risk of investing in currencies is that their exchange rates decline. Although the US dollar is very strong, it is not impossible that there is a difference in value when you buy and sell.
For example, buy for Rp. 14,500 per dollar, but when you have to sell it for Rp. 14,400. It's only USD1. If you buy USD1000, try to calculate the loss.
Mid-March to April 2020, the US dollar had strengthened. The exchange rate of USD1 was IDR 16,457 on March 25. This is due to the Covid-19 pandemic in Indonesia.
However, from May to August, the rupiah actually strengthened. On August 5, the exchange rate of the US dollar to the rupiah was Rp. 14,550. The weakening of the US dollar is also due to the pandemic in Donald Trump's country which has not been fully resolved.
For investment, there are other options. Such as precious metals, bonds, mutual funds, and stocks. Currently, investment in precious metals or gold is skyrocketing. Because gold is a safe haven in the midst of uncertain conditions.
Investments in bonds, mutual funds, and stocks are no less interesting. Government bonds provide coupons (profits) that are quite promising and stable. Mutual funds offer an easy, affordable way to invest (starting from IDR 100,000), and have four types that are tailored to your goals.
As for the stock, the price is being discounted. Many stocks have good fundamentals that can be glimpsed, because the price is going down.
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