5 Unexpected Countries That Use the U.S Dollar

The U.S. dollar is very powerful worldwide, and many countries use it as their money.

The U.S. dollar, first minted back in 1794, has ascended to become a global titan of trade and a beacon of economic stability, transcending its American origins. 

The dollar’s influence extends far beyond the U.S. borders, serving as the operational currency in numerous corners of the world.

There are already several countries and territories where the dollar reigns supreme.

Here are 5 countries that have adopted the U.S. dollar

 1. Ecuador

In 2000, Ecuador made a pivotal shift to the U.S. dollar to stabilize its economy after severe inflation and a banking crisis threatened its financial stability. This move has brought considerable stability, attracting foreign investment and improving economic predictability for businesses and consumers alike.

 2. Zimbabwe

Zimbabwe’s adoption of the U.S. dollar in 2009 came as a rescue strategy after hyperinflation rendered its own currency virtually worthless. The switch has helped restore some measure of economic stability, although challenges in obtaining physical dollar bills continue to affect daily transactions.

3. Panama

Panama has used the U.S. dollar alongside its own currency, the balboa, since 1904. This unique arrangement has facilitated a stable economic environment and made Panama an attractive hub for international business, especially in banking and commerce.

 4. El Salvador

El Salvador transitioned to the U.S. dollar in 2001 to foster economic stability and attract foreign investment. While dollarisation has achieved these goals to some extent, it has also limited the country’s control over its monetary policy.

5. East Timor

Since gaining independence in 2002, East Timor has utilised the U.S. dollar to avoid the economic instability associated with introducing a new currency.

The decision has helped maintain economic stability in the nascent nation but also poses challenges in terms of monetary policy autonomy.