Countries That Use the US Dollar

As the official currency of the United States, the American dollar (USD) holds significant influence not just domestically, but on a global scale. Since the Coinage Act of 1792, the U.S. dollar has played a critical role in establishing the country’s economic credentials and shaping the global financial landscape. After World War I, its prominence grew as an international reserve currency, eventually overtaking the British pound sterling as the world’s primary reserve currency. We delve into the various countries that have adopted the U.S dollar as their official currency highlighting the interconnection of economies and providing a comprehensive understanding of the influence of the U.S. dollar in global economic systems.

• Beyond the United States, there are a number of countries and territories that use the U.S. dollar as their official currency. These include regions such as Puerto Rico and Guam, which are territories of the United States.
• Notably, the use of the U.S dollar extends even to regions geographically distant from America. Examples include Timor Leste, located southeast of Indonesia, and Zimbabwe in Africa.
• The U.S dollar is used in countries with varying economic sizes, stability, and development levels, indicating its value as a stable and trustworthy currency. This is observed in its adoption by economies like Panama and El Salvador, as well as island nations like Micronesia and the Marshall Islands.
• Ecuador represents an interesting case in South America for adopting the U.S. dollar as its official currency, after the value of its own currency collapsed.