Why is the US dollar called "USD"? A deep dive into its origins.

In the financial field, when we mention the US dollar, we often hear the nickname "US dollar". This has an influential historical origin that is closely linked to the Bretton Woods system.

In July 1944, a conference that had a profound impact on the global monetary and financial landscape—the United Nations Monetary and Financial Conference—was held in Bretton Woods, New Hampshire, USA. Representatives from 44 countries gathered together, and after multiple rounds of intense discussions and negotiations, the famous Bretton Woods Agreement was finally reached.

The agreement established a brand new international monetary system, with the most critical aspect being the direct link between the US dollar and gold. The US government solemnly promised the world that every ounce of gold would be fixed at 35 dollars, and other countries' governments or central banks had the right to exchange gold for dollars at this official price. At the same time, currencies of various countries were linked to the US dollar and maintained fixed exchange rates, which greatly stabilized the post-war international monetary order and allowed the dollar to establish a strong reputation and stable value globally. It is precisely because of the close exchange relationship between the dollar and gold that people gradually became accustomed to referring to the dollar as "美金".

However, with the changes in the global economic situation, in 1971, U.S. President Nixon announced the decoupling of the dollar from gold, marking the collapse of the Bretton Woods system. Although the dollar lost its fixed exchange basis with gold, the term "USD" continued to persist in the public sphere, becoming a unique mark that history has given to the dollar, often reminding people of that special era when the dollar was deeply tied to gold, as well as the complex economic logic behind the evolution of the international monetary system.