Your American History Reference Guide!
- International dollar

HistoryMania Information Site on International dollar American History American History Search        American History Browse welcome to our free resource site for all enthusiasts!

International dollar

The international dollar is a hypothetical unit of currency that has the same purchasing power that the U.S. dollar has in the United States at a given point in time. It shows how much a local currency unit is worth within the country's borders. Conversions to international dollars are calculated using purchasing power parities (PPP). It is comparisons both between countries and over time. For example, comparing per capita gross domestic product (GDP) of various countries in international dollars, rather than based simply on exchange rates, provides a more valid measure to compare standards of living.

Figures expressed in international dollars cannot be converted to another country's currency using current market exchange rates; instead they must be converted using the country's PPP exchange rate used in the study.

The contents of this article are licensed from Wikipedia.org under the
GNU Free Documentation License. How to see transparent copy
Search | Browse | Contact | Legal info