What is the Kuwaiti Dinar (KWD)?

The Kuwaiti Dinar, denoted by KWD, is the official currency of Kuwait. The KWD, which is divided into 100 units, was introduced to Kuwait in 1960 as a replacement for the Indian Rupee. The currency has maintained a very high exchange rate, making it one of the highest valued currencies in the world.
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets

Political Structure
The chief of state in Kuwait is the Emir, a semi-hereditary title. The emir appoints the prime minister, who, in the past, was also the crown prince. A council of ministers aids the prime minister in his task as head of government. The parliament known as the Majlis Al-Umma, consists of 50 members who are chosen in elections held every four years. Government ministers, according to the Constitution of the State, are given automatic membership in the parliament.

Prominent
Figures Emir of Kuwait: Jabir al Sabah
Crown Prince of Kuwait: Nawaf al-Ahmad al-Jabir al-Sabah
Prime Minister: Nasir Muhammad al-Ahmad al-Sabah (since 3 April 2007);
Chief of state: Amir Sabah al-Ahmad al-Jabir al-Sabah (since 29 January 2006)

Unique Characteristics
Kuwait is a small, rich, relatively open economy with proved crude oil reserves of about 98 billion barrels - 10% of world reserves. Kuwait's economy is heavily dependent on oil export revenues. Kuwait has the third largest oil reserves in the world after Saudi Arabia and Iraq. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income.

Key Economic Factors
Economic Overview: Kuwait is a small, rich and relatively open economy with crude oil constituting 10% of the world's oil reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and over 75% of the government's income. The climate in Kuwait is a large obstacle in agricultural development, causing the nation to depend almost wholly on food imports (with the exception of fish). Additionally, approximately 75% of water must be distilled or imported. Kuwait continues its discussions with foreign oil companies to develop fields in the northern part of the country.

Industries: Petroleum, petrochemicals, desalination, food processing and construction materials.
Main Export Trading Partners: Japan, South Korea, US, Singapore, Taiwan and Pakistan.
Exports Commodities: Oil, refined products and fertilizers.
Imports Commodities: Food, construction materials, vehicles and parts and clothing.
Main Import Trading Partners: US , Japan, Germany, China, UK, Saudi Arabia, Italy and France.

What is the Bahamian dollar (BSD)?

The Bahamian dollar, often denoted by BSD, is the official currency of the Bahamas. The BSD is pegged to the U.S. dollar (one to one). The Bahamas attained self-government in 1964 and then full independence from Great Britain in 1973. Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Political Structure The Bahamas is a constitutional parliamentary democracy made up of three different branches: executive, legislative, and judicial. The executive branch is composed of a monarch, governor general, prime minister, deputy prime minister, and the cabinet. Elections do not take place in the Bahamas. Instead, leaders are appointed from within. The monarch is hereditary and appoints the governor general. Then, the governor general appoints the prime minister who then recommends a deputy prime minister. The deputy prime minister on the recommendation of the prime minister appoints the cabinet. The legislative branch is a bicameral Parliament, which consists of a Senate and a House of Assembly. The senate has 16 members who are all appointed by the governor general on the advice of the prime minister and the opposition leader. These 16 members serve a five-year term. The House of Assembly is composed of 40 members who serve a five-year term and are elected by popular vote. In addition, the government of the Bahamas may break up the parliament and call elections at any time. The judicial branch consists of a Supreme Court, Court of Appeal, and a Magistrates Courts.

Prominent Figures Queen: Elizabeth II, since February 6, 1952.

Governor General: Arthur Dion Hanna

Prime Minister: Perry Christie, since May 3, 2002.

Deputy Prime Minister: Cynthia Pratt, since May 7, 2002.

Key Economic Factors

Economic Overview: The Bahamas is an economically stable country with a developed infrastructure, economy, and socio-political atmosphere. It relies heavily on the performance of tourism and offshore banking. More than 50% of the population is in some way involved with tourism and the industry accounts for more than a 60% share of the GDP. The growth in tourism has resulted in an increase in the construction of hotels, resorts and the like, as well as in the creation of news jobs and opportunities in related fields. It has also helped promote a positive GDP growth. In addition, the Bahamas' economy is closely tied with the economy of the United States. Growth developments rely on the tourism sector, which in turn, relies heavily on growth in the Unites States as 80% of visitors to the Bahamas come from the US.

Also, the September 11th attacks on US soil severely dampened the American economy, and stumped Bahamas' economic growth in 2001-03. The government has recently passed new regulations on the financial sector that contributed to many international businesses pulling out of the Bahamas as a place to invest. Because of this, the 15% share that the financial sector shared in the GDP has decreased. Manufacturing and agriculture together accounted for a tenth of the GDP. These sectors seem unlikely to increase, despite government intervention.

GDP-composition by sector: Agriculture-3%, Industry-7%, Services-90%.

Agricultural products: Citrus, vegetables, and poultry. Exports: ($636 million) mineral products and salt, animal products, rum, chemicals, fruit, and vegetables.

Imports: ($1.63 billion) machinery and transport equipment, manufactures, chemicals, mineral fuels, food and live animals.

Import partners: US 22.3%, South Korea 19%, Japan 8.2%, Brazil 8.2%, Italy 8.1%, Venezuela 6.8%.

What is the Australian dollar (AUD)?

The Australian dollar, denoted by AUD or A$, is the official currency of the Commonwealth of Australia (including the Australian Antarctic Territory, Christmas Island, Cocos Islands, Heard Island and Mc Donald Islands as well as the independent Pacific island states of Kiribati, Nauru and Tuvalu). The AUD is sometimes called the "Aussie" and locally, the "Pacific Peso."

The AUD is the sixth most traded currency in the foreign exchange markets, trailing behind the United States dollar, Japanese yen, euro, British pound sterling and Canadian dollar. Accounting for approximately 5% of worldwide foreign exchange transactions, the AUD is popular among currency traders because of the nation's relative lack of government intervention in the FX market. Additionally, the economy and government are rather stable and the AUD seems to offer diversification benefits in a portfolio containing the major world currencies (for reasons such as greater exposure to Asian economies and the commodities cycle, for example).Each Australian dollar can be broken down into 100 cents.

The smallest coin circulating (as of mid-2005) is equal to five cents; one and two cent coins were discontinued in the early 90s and withdrawn from circulation. Cash transactions are rounded up or down to the nearest multiple of five cents.

History

The Australian dollar was first introduced in 1966 when it replaced the Australian pound and introduced a decimal system to the nation. Robert Menzies, Australian Prime Minister at the time, wished to name the currency "the Royal" other names such as "the Austral" and "the Koala" were suggested as well. While the name "Royal" was settled upon initially, it proved extremely unpopular amongst the crowds and thus the unusual name was removed and replaced with the "Dollar." For much of its history, Australia maintained a peg to the British pound reflecting its historical ties as well as a view about the stability in value of the British pound. From 1946 to 1971, Australia maintained a peg to the US dollar under the Bretton Woods System.

With the breakdown of the Bretton Woods system in 1971, Australia replaced the mostly fixed peg to a moving peg against the US dollar. In September 1974, Australia moved to a peg against a basket of currencies called the TWI (trade weighted index) in an effort to reduce fluctuations associated with its peg to the US dollar. The peg to the TWI was changed to a moving peg in November 1976 where the actual value of the peg was periodically adjusted. In December 1983, the Australian government "floated" the Australian dollar, meaning that it no longer managed its value by reference to any foreign currency.
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Political Structure

The Commonwealth of Australia is a constitutional monarchy with a parliamentary system of government. The government has three main arms: the executive, legislative and judiciary. The executive branch is called the Federal Executive Council and is comprised of the Governor-General and executive councilors. The councilors, in practice, are the prime minister and ministers of state, who advise the Governor-General. The Queen is nominally represented by the Governor-General, who is given extensive powers by the Constitution.

The legislative branch is the bicameral Commonwealth Parliament which is made up of the Senate, the upper house (76 members), and the House of Representatives, the lower house (150 members). Members of the lower house are elected from single-member constituencies that are often known as "electorates" or "seats." The more populous a state, the more members it returns to the lower house, with a minimum of five members per state. In the Senate, each state, regardless of population, is represented by 12 senators, and each mainland territory by two. Elections for both chambers are held every three years; typically only half of the Senate seats are put to each election, because senators have overlapping six-year terms.

The Government is formed in the lower house, and the leader of the majority party or coalition in the House of Representatives is the Prime Minister. The judiciary branch is made up of the High Court of Australia and other federal courts. The judiciary became officially independent from that of the United Kingdom in 1986, due to the Australia Act.

Prominent Figures

Governor General: Michael Jeffery, Maj. Gen. (Ret.)

Prime Minister: John Howard

Deputy Prime Minister: Mark Vale

Treasurer: Peter Costello

Special Minister of State: Gary Nairn

Attorney General: Philip Ruddock

Chairman, Reserve Bank: Glenn Stevens

Ambassador to the US: Dennis Richardson

Key Economic Factors

Economic Overview: Australia's economy is a Westernized, capitalist one, with a GDP per capita on part with the four dominant economies of Western Europe. The economy is fueled the most by rising output in the domestic economy as well as robust business and consume confidence and rising exports of raw and agricultural goods. The nation puts great emphasis on reforms, low inflation and growing ties with China, all of which have proven helpful in strengthening the economy. Over the past few years, Australia's trade deficit has suffered due to drought, weak foreign demand, and strong import demand. Another large concern of the nation is the rapid increase in domestic housing prices, which have raised the prospects that interest rates will need to be raised to prevent a speculative bubble from forming.

Key Industries:Mining, industrial and transportation equipment, food processing, chemicals and steel.

Agricultural Products: Wheat, barley, sugarcane, fruit, cattle, sheep and poultry.

Export Commodities: Coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment. Import Commodities: Machinery and transport equipment, computers and office machines, telecommunication equipment and parts and crude oil and petroleum products.

What is the Bermuda dollar (BMD)?

The Bermuda dollar, often denoted by BMD, is the official currency of Bermuda. Though pegged to the US Dollar at a 1:1 rate, the Bermuda dollar is still considered a domestic currency. Bermuda's currency is neither traded nor used outside of Bermuda. Circulating in Bermuda since 1970, the BMD was preceded by the British pound. Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Political Structure
Bermuda is a parliamentary British overseas territory with an internal self-government. This government consists of three branches: the executive, legislative, and judicial. The executive branch is composed of a monarch, governor, premier, deputy premier and a cabinet. There are no elections in Bermuda. The monarch is hereditary and appoints the governor. The leader of the majority party or coalition usually becomes the premier by getting appointed by the governor. The premier then nominates the cabinet members. The legislative branch is a bicameral Parliament, which consists of the Senate and the House of Assembly. The Senate is composed of 11 members who are appointed by the governor, premier and the opposition. The House of Assembly has 36 members who are elected by popular vote and serve five-year terms. The judicial branch consists of a Supreme Court, Court of Appeal, and Magistrate Courts.

Prominent Figures: Queen: Elizabeth II, since February 6, 1952
Governor: Sir John Vereker, since April 2002
Premier: Alex Scott, since July 24, 2003
Deputy Premier: Ewart Brown, since July 24, 2003
Chairman of Bermuda Monetary Authority: Cheryl-Ann Lister

Key Economic Factors
Tourism and International Business: These two industries are Bermuda's most important sources of revenue. The bulk (about 80%) of the tourists come from North America, over about 400,000 annually.
The September 11th , 2001 terrorist attacks had both positive and negative effects on Bermuda. A negative consequence was that tourism declined because American tourists were more hesitant to travel. However, tourism rebounded after 2002. On the positive side, many new reinsurance companies appeared on the island, helping the already booming international business sector. There has been continued growth of the international business sector over tourism, which is said to be a stabilizing factor for the economy of Bermuda.

What is the Brunei dollar (BND)?

The dollar, denoted by BND, is the official currency of Brunei. As Singapore is one of Brunei's major trading partners, the BND is pegged to the Singapore dollar at a 1:1 ratio. The Brunei dollar is also known as "ringgit" locally in Malay, and this can be seen printed on the banknote itself. Polymer banknotes of the currency were introduced in 2004, due to high cases of banknote forgery.
Sovereign Ratings for Brunei Brunei is not rated.

Political Structure

The government of Brunei is a constitutional sultanate, containing executive, judicial and legislative branches. Both the head of state and the head of government are the Sultan. The Sultan is in charge of appointing the Council of Cabinet Ministers who advises him. This ministerial setup of the Brunei government has been in use since January 1984, the time when Brunei first gained full independence.

Prominent Figures

Sultan and Prime Minister: Sir Hassanal Bolkiah, since 1967. (Note: he serves as both the chief of state and head of government.)

Head of the Central Bank: Brunei Currency Board (which is led by the Sultan)

Key Economic Factors Overview: Though rather small, Brunei's economy is a successful and diversified one (encompassing a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures and more). Brunei's economy is largely characterized by crude oil and gas production which account for approximately 53% of GDP and 90% of exports. Brunei's GDP per capita is far beyond that of most other Third World countries, and is the third largest oil producer in all of South Asia. The government of Brunei provides all medical services for its citizens, as well as free education through the university level (another great perk is that rice and housing are subsidized). Political leaders' main concern is that increased global integration will have a detrimental effect on social cohesion within Brunei. The government's main future plans include upgrading the labor force, reducing unemployment, strengthening the banking and tourist sectors, and further widening the economic base so it encompasses more than oil and gas.

GDP Composition by Sector:

Agriculture: 5%, Industry: 45%, Services: 50% (2001).

Key Industries:

Petroleum, petroleum refining, liquefied natural gas, and construction. Agricultural Products: Rice, vegetables, fruits, chickens and water buffalo.

Export Commodities: Crude oil, natural gas, and refined products.

Import Commodities: Machinery and transport equipment, manufactured goods, food and chemicals.

What is the Afghani (AFA)?

The afghani, denoted by AFA, is the official currency used in Afghanistan. Behind the afghani lies a history characterized by a lack of standardization and currency revaluation. Prior to the United States invasion of Afghanistan, political parties, foreign powers and forgers each made their own afghanis; the key attribute of this currency, at the time, was that there was essentially no standardization as afghanis were made without honoring serial numbers. (For example, after the Northern Alliance lost its power in 1996, banknotes were produced in Russia and sold on Kabul's markets at half the value!) In early 2003, a three-month transition period ended in the swapping of old afghani banknotes for new currency. The new afghani received the code AFN, and had three zeros eliminated. As soon as October hit, Anwar Ul-Haq Ahadi, Governor of the Afghan Central Bank, announced that Afghans should use their own currency for daily transactions instead of the commonly utilized US dollars and Pakistani rupees. This move was in preparation for October 8, 2003, when all prices in the Afghan marketplace were to be specified in afghanis.

Political Structure

Based on its 2004 constitution, Afghanistan is run by a president who is directly elected by the popular vote to serve a five-year term. To qualify for standing, a presidential candidate must be at least forty years of age, Muslim, and an Afghan citizen. Limited to two terms, the president serves as head of state and government as well as commander-in-chief of the armed forces. The president makes appointments for his cabinet as well as posts in the military, police force, and provincial governorships (all with the approval of the parliament). There are also two vice presidents.Afghanistan's legislative body is a parliament consisting of two houses: the Wolesi Jirga, the House of the People, and the Meshrano Jirga, House of Elders. The former is constituted by 250 members elected to five-year terms directly by the people, in proportion to the population of each province; a requirement of two women from each province has been instituted. In the Meshrano Jirga, one third of the members are elected by provincial councils for four years, on third are elected by district councils of each province for three years, and one third are appointed by the president for five years?of which a half of the elected positions must be women. Finally, the Stera Mahkama, the Supreme Court, constitutes Afghanistan's judicial system. The Stera Mahkama is made up of nine judges appointed by the president to a ten-year term, with approval of the parliament. Judges must be at least forty years of age, have a degree in law or Islamic jurisprudence, and stand free of any affiliation to a political party. The appeals courts and lower district courts are also vital to the country's judicial system.

Prominent Figures

President: Hamid Karzai, first ever democratically elected head of state in Afghanistan

Foreign Minister: Rangin Dadfar Spanta

Finance Minister / Governor of Afghan Central Bank: Anwar Ul-Haq Ahady

Defense Minister: Abdul Rahim Wardak

Key Economic Factors

Economic Overview: Afghanistan is an extremely poor, landlocked country with a high economic dependence on foreign aid, farming, and trade with bordering countries. A large proportion of the nation suffers from a lack of housing, clean water, electricity, access to medical care, and employment, providing for an extremely bleak environment nationwide. Despite this dark picture, however, Afghanistan is largely convalescing. From a developmental standpoint, the government and international donors are extremely committed to improvements in infrastructure development, education, housing development, and job programs. From an economic perspective, the recent years' infusion of over $2B in international assistance has allowed for dramatic improvements in agricultural production and the end of a four year drought in most of the country. Economic reform is well on its way.

Industries: Small-scale production of textiles, soap, furniture, shoes, fertilizer, cement, hand-woven carpets, natural gas, coal and copper.

Agricultural Products: Opium, wheat, fruits, nuts, wool, mutton, sheepskins, and lambskins.

Export Commodities: Opium, fruits and nuts, hand-woven carpets, wool, cotton, hides and pelts, precious and semi-precious gems.

Import Commodities: Capital goods, food, textiles, petroleum products.

What is the Euro (EUR)?

The euro, often signified by €EUR, is the currency used in 13 members of the European Union, as well as regions such as Montenegro, Kosovo, Andorra and more. In January of 2008, Cyprus and Malta are scheduled to convert to the euro. The euro is the result of the most significant monetary reform in Europe since the Roman Empire. While creation of this currency is most obviously a channel through which Europe may perfect a single market (by facilitating free trade between members of the Eurozone), the euro is just as importantly a means through which Europe may achieve political integration.
Although the euro was only formally put into circulation on January 1, 2002, the idea of creating "an ever closer union among the peoples of Europe" has been around for decades-as stated in the Treaty of Rome in 1957. In 1979, the European Monetary System (EMS) was introduced and locked exchange rates among participating countries, which aided efforts to stabilize the economy. In 1992, the Economic and Monetary Union (EMU) was formed which set the basics for the creation of the single currency. Seven years later on January 1, 1999-the euro was born when the participating countries established exchange rates between their own currencies and the euro creating a monetary union. It took three years of transition, where the euro was only used as electric money, until actual euro notes and coins were used. Now, the 12 euro area member states have a single currency, a common interest rate, and a common central bank (European System of Central Banks.) It is the largest monetary replacement the world has ever seen.
The euro is administered by the European System of Central Banks (ESCB), which is comprised of the European Central Bank (ECB) and the Eurozone central banks. Headquartered in Frankfurt, Germany, the ECB has the sole authority to set monetary policy; other members of the ESCB participate through printing, minting, and distributing notes and coins.

Where is the Euro Used?The countries in the European Union that use the euro are:Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, The Netherlands, Austria, Portugal, Finland and Slovenia

Where is the Euro Used?

The countries in the European Union that use the euro are:Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, The Netherlands, Austria, Portugal, Finland, and Slovenia
Where is the NOT Euro Used?EU countries not using the euro are: Denmark, Sweden, and the U.K.Other territories using the euro are: Andorra, Monaco, San Marino, The Vatican, Martinique, Guadalupe (Caribbean), Reunion (Indian Ocean), Montenegro and Kosovo.

Political Structure

The European Union (EU) is comprised of 27 democratic states. It was established in 1992 by the Treaty on European Union and is headquartered in Brussels. The members of the EU are: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, The Netherlands, the United Kingdom, Bulgaria and Romania. All decisions and procedures in the EU are based on treaties agreed upon by these countries. Since its establishment, people, goods, services and money are free to move throughout the union as if it were one country.

Prominent Figures

Country Political Leader
Austria Alfred Gusenbauer
Belgium Guy Verhofstadt
Cyprus Tassos Nikolaou Papadopoulos
Czech Republic Mirek Topolanek
Denmark Anders Fogh Rasmussen
Estonia Andrus Ansip
Finland Tarja Kaarina Halonen
France Nicolas Sarkozy
Germany Angela Merkel
Greece Karolos G. Papoulias
Hungary Ferenc Gyurcsany
Ireland Mary Patricia McAleese
Italy Romano Prodi
Latvia Vaira Vike-Freiberga
Lithuania Valdas Adamkus
Luxemburg Jean-Claude Juncker
Malta Edward Fenech Adami
Poland Jaroslaw Kaczynski
Portugal Jose Socrates
Slovakia Ivan Gasparovic
Slovenia Janez Drnovsek
Spain Jose Luis Rodriguez Zapatero
Sweden Fredrik Reinfeldt
The Netherlands Jan Peter Balkenende
United Kingdom Gordon Brown

Unique Characteristics

The economy of the euro zone is much larger and more closed than the economies of most individual countries. With over 300 million individual participants, it is the largest economy in the world. The EU maintains its economic stature by enforcing high macroeconomic standards. Over the years, the EU has lowered inflation, interest rates and unemployment, and demands these characteristics from any country that wishes to adopt the euro. For example, a nation must have no more than a 3% inflation rate to use the euro as its currency. Although the euro zone has a more open economy than those of countries such as the Unites States or Japan, it is more closed relative to many other economies, which limits external economic developments in the euro zone.
The major imports of the euro zone are raw materials and intermediate goods. The euro, as compared with the dollar is very strong. More euros are circulating within the market, than dollars, because of the union's huge connection to OPEC and oil prices.

Key Economic Factors

US Trade Balance Report: Analyzing the value of the euro currency against that of the U.S. dollar, a major factor that influences the relative values is the US Trade Balance Report. Released monthly, the EUR/USD value is dependent upon whether the deficit expands or contracts. The EUR/USD value is likely to travel in the same direction the deficit amount does (i.e. if the deficit increases, the euro will increase in value relative to the U.S. dollar).

Economic Data

Many people are watching Europe's economy very closely. The growth of the union is much slower as compared to the surrounding economies. Swiss unemployment has been a problem for the euro. In June 2005, the rates stood at 3.8% with high youth unemployment and long-term joblessness as significant problems. Germany has been on a rebound in 2005 in regards to manufacturing orders. The Purchasing Manager's Index revealed that the number of new export orders has increased. However, industrial production as well as domestic economic activity has been on the decline.

What is the United States Dollar (USD)?

The United States dollar, denoted by USD or the symbol $, is the official currency used in the United States. Commonly referred to as the "American dollar," the currency is divided into 100 cents (symbol ¢). A further division includes 1,000 mills to a dollar, though this division is largely unknown to the general public and only sometimes used in matters of tax levies.
When currently issued in circulating form, denominations equal to or less than a dollar are emitted as U.S. coins while denominations equal to or greater than a dollar are emitted as Federal Reserve notes. (Both one-dollar coins and notes are produced today, although the note form is significantly more common.) In the past, paper money was occasionally issued in denominations less than a dollar and gold coins were issued for circulation up to the value of twenty dollars.
The United States Mint is in charge of producing the nation's coins, while the Bureau of Engraving has printed banknotes and Printing for the Federal Reserve since 1914. Note size used to be very large but switched over to a smaller size in 1928; reasons for this switch, however, are unknown.
The dollar is considered the standard unit of currency in commodity markets across the globe (namely gold and oil). At the present time, the U.S. dollar remains the world's foremost reserve currency, primarily held in $100 denominations. The majority of U.S. notes are actually held outside the United States. According to economist Paul Samuelson, the overseas demand for dollars allows the United States to maintain persistent trade deficits without causing the value of the currency to depreciate and the flow of trade to readjust. In 1995, over $380 billion (380 G$) in U.S. currency was in circulation, two-thirds of it overseas. As of April 2004, nearly $700 billion was in circulation, with an estimated half to two-thirds of it still being held overseas.

Usage

A few nations besides the United States use the U.S. dollar as their official currency. Ecuador, El Salvador and East Timor all adopted the currency independently; former members of the US-administered Trust Territory of the Pacific Islands (namely Palau, the Federated States of Micronesia and the Marshall Islands) decided that, despite their independence, they wanted to keep the U.S. dollar as their official currency. Additionally, local currencies of several states such as Bermuda, the Bahamas, Panama and a few other states can be freely exchanged at a 1:1 ratio for the U.S. dollar. Finally, a number of nations have tied their currencies to the U.S. dollar - including Argentina (1:1 fixed exchange rate from 1991 until 2002), Lebanon (one dollar = 1500 Lebanese pound), Hong Kong (one U.S. dollar = HK$ 7.8 since 1983), and several more. A significant recent development is the action of the People's Republic of China: the renminbi had once been informally and controversially pegged to the dollar (since the mid-1990s, at 1 U.S. dollar = 8.28 Y); however the peg was removed on July 21, 2005. Instead, China has a managed float against a basket of currencies.
Moody's Rating
Aaa
S&P Rating
AAA
Sovereign credit ratings play an important part in determining a country's access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.
What does it look like?

Political Structure

The United States government can be best described as a republic or liberal democracy. More specifically, the United States is a representative democracy with three levels of government all freely elected by the American people: federal, state and local.
Federal Government The federal government is the national government, whose powers are limited by the Constitution to defense, foreign affairs, printing money, controlling trade and relations between the states, and protecting human rights. In addition to these powers, the federal government has extended the powers beyond their explicit statements into welfare and education (citing the "necessary and proper" clause of the Constitution). The federal government is comprised of the Congress (legislative branch), President (executive branch) and Supreme Court (judicial branch). Each branch applies checks and balances on each other.
The President of the United States who serves as Commander in Chief of the Armed Forces leads the executive branch. The President signs laws into action and can issue pardons and executive orders. His other Constitutional duties are few, of them the State of the Union address to Congress being the most important. Below the President is the Vice President who is first in line of succession and is the President of the Senate (with the ability to cast a tie-breaking vote). Both the President and Vice President are elected by the people via an Electoral College, and serve four-year terms. Finally, the Cabinet also holds a role in the executive branch. The Cabinet is composed of various departments (Defense, Justice, State, etc.). These departments and their heads hold much regulatory and political power, and it is these departments that are used to executive the nation's laws.

In the legislative branch is the Congress, a bicameral institution composed of the House of Representatives and the Senate. Meeting in the United States Capitol in Washington, D.C., the two houses (lower and upper, respectively) work to make laws for the nation. The House has 435 members called representatives (or congressmen and congresswomen), who are elected by the people of a congressional district to represent that district for a two-year term. The Senate has 100 members called senators, who are too, elected by the people of a state to represent that state; in this case, however, terms are six years long. Each state, regardless of its size, has two senators.
The judicial branch of the federal government is used when dealing with federal and constitutional matters. The highest court is the Supreme Court, which consists of nine justices; the Court can declare legislation unconstitutional regardless of the level at which it was made, thus nullifying the law and creating a precedent for future law and decisions. Below the Supreme Court are the appeal courts, and finally the district courts, which are the general trial courts for federal law.
State and Local Governments From an everyday perspective, state governments have the greatest influence on the people. Each state has its own written constitution and distinct laws. There are often large discrepancies in law and procedure between different states on issues such as property, crime, health, and education. The highest elected official of each state is the Governor. Each state also has an elected legislature (which is bicameral in all states but Nebraska); members represent the different parts of the state. Each state maintains its own judiciary, with the lowest level typically being county courts, and culminating in a supreme court. In some states, the people elect supreme and lower court justices; in others, they are appointed, as they are in the federal system.
The institutions that are responsible for local government are typically town, city, or county councils, making laws that affect their particular area. These laws concern issues such as traffic, the sale of alcohol and keeping animals. The highest elected official of a town or city is usually the mayor. In New England, towns operate directly democratically, and in some states, counties have little or no power, existing only as geographic distinctions. In other areas, county governments have more power, such as to collect taxes and maintain law enforcement agencies.

Prominent Figures

President: George W. Bush

Vice President: Richard B. Cheney

Secretary of State: Condoleezza Rice

Attorney General: Alberto Gonzalez

President's Chief of Staff: Joshua Bolton

Chairman of the Federal Reserve: Ben Bernanke

Key Economic Factors

Economic Overview:The United States has the largest and most technologically influential economy with the world, with a remarkable per capita GDP of $40,100 (second highest in the world after Luxembourg). Private individuals and business firms make most of the decisions in this economy as it is extremely market-oriented; federal and state governments buy needed goods and services predominantly in the private marketplace. Though US business firms enjoy relatively high flexibility in decisions to expand capital plants, lay off workers and develop new products, they too face substantially higher barriers to entry in their rivals' home markets (than barriers to entry of foreign firms in US markets). Firms in the United States are at or approaching the forefront in technological advances, namely in computers and medical, aerospace and military equipment. This onrush of technology is largely responsible for the gradual development of what is often called a "two-tier labor market" - those at the bottom lack the education and professional skills of those at the top and increasingly fail to get comparable pay raises, health insurance, and other normal benefits. In the last three decades (since 1975 in particular), practically all gains in household income have gone to the top quintile of households. The resilience of the United States' economy was demonstrated in the response to the terrorist attacks of September 11, 2001. The war on Iraq in March/April 2003, followed by occupation of Iraq, required a large shift of resources to the United States Military. Notable increases in energy prices negatively affected the economy in the second half of 2004. The United States economy, in the long term, must consider problems such as inadequate investment in economic infrastructure, the rapidly rising medical and pension costs of an aging population, the twin deficits (trade and budget), and stagnation of family income in lower economic groups.

Key Industries:

Leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber and mining.

Agricultural Products: Wheat, corn, other grains, fruits, vegetables, cotton, beef, pork, poultry, dairy products; forest products and fish.

Export Commodities: Agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0% and consumer goods (automobiles, medicines) 15.0%. All figures as of 2003.

Import Commodities: Agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery) and consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys). All figures as of 2003.