Since you asked for the topic in colloquial language, let's talk about the dollar bill worth 1 US dollar (USD1) simply!
One dollar: not just a green paper!
The paper in your pocket, or what we see in movies, which is worth 1 US dollar, is not just a printed paper. It is something very important in the whole world, and let me explain why:
1. Front and Back: Who are they?
* Front Side: You'll find a picture of 'George Washington', the first president of America. So it's not just anyone; he is the founder of America. Above his picture, there will be text about the 'Federal Reserve', which is America’s central bank that prints and controls this money.
* Back Side: You will find two very important things: 'The Great Seal of the United States'. There are two seals, one with an eagle hunting, and the other with a pyramid missing its top and an eye above it. These seals are full of symbols and meanings about America and its history and goals. Things like 'Annuit Coeptis' (meaning: He favors our endeavors) and 'Novus Ordo Seclorum' (meaning: A new order for the ages) which indicate the establishment of a new nation.
2. Why is the dollar so important?
* Global Currency: The US dollar is the currency that most countries in the world use in international trade. This means if Egypt wants to buy something from China, it will likely pay in dollars. If you travel abroad, you will find most currencies can be easily exchanged for dollars.
* Safe Haven during Crises: When any economic problem occurs in the world, or war, or any anxiety, people, companies, and governments rush to convert their money to dollars. Why? Because they consider it a safe haven, meaning its value does not decrease as quickly as other currencies during crises, and this is due to America's economy being large and relatively strong.
* Price Measurement: The prices of many things in the world are determined in dollars, like the price of oil, gold, and metals. So if the price of oil rises, you will find its price in dollars has increased.
* Tourism and Investment: When someone comes to invest in a country, or a tourist arrives, they often convert their money to dollars to make transactions easier.
3. Where does the dollar's strength come from?
The strength of the dollar comes from the strength of the American economy itself. America has the largest economy in the world, with giant companies, a strong labor market, and a stable financial system. All of this makes people trust the dollar and deal with it.
4. Does its price change? Yes, of course!
Like any currency, the value of the dollar changes against other currencies. This means the dollar can be a little more expensive or a little cheaper against the Egyptian pound, for example. This depends on many factors like the economic situation in America, interest rates, and the size of global trade.
In summary:
This 1 dollar bill is not just an ordinary green paper. It is a symbol of global economic power and plays a fundamental role in trade, investment, and tourism around the world. Knowing its details helps us understand better how the economy works.
The global market is working.