what is the us dollar backed by

The US dollar is not backed by a physical commodity such as gold or silver. Earlier in US history, the countrys currency was backed by gold (and in some cases, silver), but the gold standard ended completely in 1971 when the US stopped issuing gold to foreign governments in exchange for US currency. Since then, US dollars are known to be backed by the "full faith and credit" of the US government, "legal tender for all debts, public and private" but not "redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank," as stated by Investopedia. Federal Reserve notes have not been redeemable in gold, silver, or any other commodity since January 30, 1934. Instead, the Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation, which is chiefly held in the form of US Treasury, federal agency, and government-sponsored enterprise securities. Therefore, the US dollar is backed by a complex system of government securities and holdings.