About the US Dollar
The US dollar is the currency of the United States and the world's main reserve currency. It is on one side of almost 90% of all currency trades, and most commodities, from oil to copper, are priced in dollars.
Monetary policy is set by the Federal Reserve. Its Federal Open Market Committee meets eight times a year, with a mandate of maximum employment and stable prices, which it defines as 2% inflation.
Because so much of world trade and debt is in dollars, Fed decisions move currencies everywhere. When markets are under stress, investors tend to buy dollars, so the dollar often strengthens in a crisis even when the trouble starts in the US.
Paying in USD
- Routing number, not IBAN
- The US does not use IBANs. A domestic payment needs the bank's 9-digit ABA routing number and the account number. Payments from abroad travel over SWIFT and need the bank's SWIFT/BIC code instead; some US banks use a different routing number for wires than for ACH.
- ACH, wires and instant
- ACH payments are processed in batches and usually arrive in one to two business days. Fedwire transfers settle the same day and are used for large or urgent payments. RTP and FedNow send instant payments, but not every US bank offers them yet.
- Correspondent fees
- International dollar payments often pass through one or more correspondent banks, each of which may deduct a fee. If the recipient must receive the exact amount, agree who pays the charges before you send.
- Recipient address
- Dollar wires need the recipient's full name and address as well as the account details. Missing addresses are a common reason for wires being held for review.
- Bank holidays
- Fedwire and ACH close on US federal holidays, such as Juneteenth (19 June), Independence Day (4 July) and Thanksgiving (fourth Thursday of November). Dollar payments due on those days settle the next business day.
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