what is national currency 
a national currency is a legal tender issued by a country s central bank or monetary authority it is typically the predominant medium of exchange for purchasing goods and services in the united states the dollar is the primary form of currency backed by the full faith and credit of the government and the federal reserve large currency bases like the dollar play an instrumental role in other regions of the world for example commodity prices are quoted in u s dollars usd despite trading in countries outside of the united states some countries peg their national currency to the u s dollar to keep inflation aligned with expectations and maintain a stable economy 