U.S. Dollar Symbols and Denominations
The Secret Symbols on the Back of the Dollar Bill
By digital vivek bheya
Updated on October 29, 2021
In This Article
- U.S. Dollar Symbolism
- U.S. Coins
- U.S. Dollar Bills
- U.S. Currency
- Dollar Exchange Rate Conversion
- Dollar Value
- The World’s Reserve Currency
- Frequently Asked Questions (FAQs)
The U.S. dollar was first designated as the world’s currency in the 1944 Bretton Woods Agreement, and it is the most powerful currency in the world.1 It’s backed by the world’s largest economy, the United States. The strength of the U.S. economy supports the dollar’s use as a global currency.2
The term “U.S. dollar” refers to a specific denomination and the U.S. currency in general. It was initially traded as a coin worth its weight in silver or gold and then exchanged as a paper note redeemable in gold. During the 1970s, the gold standard was dropped, and the dollar’s value was allowed to float.3 Today, although its value fluctuates, it’s in strong demand.
Although the dollar is still represented by currency, its true value is represented by credit. Now more than ever, the U.S. dollar is the real symbol of faith in the power of the U.S. economy.
U.S. Dollar Symbolism
The dollar symbol itself ($) is said to be derived from the previously used ps, which represented the Mexican peso, Spanish piaster, or “pieces of eight.” People eventually began to write the ‘P’ over the ‘S,’ then a single line over the ‘S,’ creating the dollar symbol.4
There has been a great deal of controversy surrounding the enigmatic symbols on the U.S. dollar bill. For instance, the arrows being held by the eagle on the dollar bill were originally held in the right talon. Arrows symbolize war, and the right side signifies dominance. Some took that to mean dominance by war. In fact, the Founding Fathers used these symbols to convey strong messages; however, they have become garbled over the years.5
The dollar bill shows the Great Shield of the United States, which contains:
- The American eagle flying free, holding 13 arrows of war in its non-dominant left talon and an olive branch for peace in its dominant right talon.
- The banner in its beak reads “E Pluribus Unum,” meaning “Out of Many, One.”
- The shield’s horizontal blue band represents Congress uniting the original 13 colonies, represented by 13 red and white vertical stripes.
- The 13 stars above the eagle represent a new nation or a constellation in the universe.
- Red stands for valor, white stands for purity, and blue stands for justice.6
On the reverse of the Great Seal stands an unfinished pyramid of 13 rows, symbolizing strength and duration. The first row reads, “1776” in Roman numerals. The banner below reads “Novus Ordo Seclorum,” which means “A New Order of the Ages.” This statement refers to a new form of government or “the beginning of the new American Era.” The all-seeing eye of the Divine is bordered by the phrase “Annuit Coeptis.” This Latin phrase means “Providence Has Favored Our Undertakings.”6
There are six denominations of coins produced, with the costs to produce them as follows:7
- Penny (worth 1 cent): In 2019, pennies cost taxpayers about $68 million.
- Nickel (worth 5 cents): Nickels add about $21 million to the U.S. debt.
- Dime (worth 10 cents): Dimes only cost 3.7 cents each to produce.
- Quarter (worth 25 cents): These costs 9 cents to make and distribute.
- Half Dollar (worth 50 cents): These cost about 6.6 cents to produce.
- Dollar (worth 100 cents): The United States is the only developed country that still uses $1 bills.
The United States no longer produces the half-cent coin, the two-cent coin, the three-cent coin, the half-dime coin (different from the nickel), or the twenty-cent coin.
U.S. Dollar Bills
There are seven denominations in bills still being printed: $1, $2, $5, $10, $20, $50, and $100. There are five larger denominations that are no longer being printed; however, some of these are held by collectors and are still considered legal tender: the $500, $1,000, $5,000, $10,000 bills. The $100,000 bill was never circulated and is not legally held by collectors or consumers.8
The pie chart below shows how many bills of each denomination were circulating in 2018. This chart represents the first year that the number of $100 bills circulating was larger than the number of $1 bills.9
The Federal Reserve, as the nation’s central bank, is responsible for making sure that enough currency is in circulation. It commissions the U.S. Treasury Department’s Bureau of Engraving and Printing to print the bills. It also authorizes its Mint Department to cast the coins. Once produced, the currency is shipped to the Federal Reserve banks, where members can exchange credit for currency as needed.10
Very few older and current bills have pictures of people other than presidents. The three who were not are Alexander Hamilton, the first Secretary of the Treasury, on the $10 bill; Benjamin Franklin on the $100 bill; and Salmon P. Chase, Treasury Secretary during the Civil War, on the $10,000 bill, which is no longer printed.