Countries using the US Dollar: Where USD is accepted as the official or de facto currency

When you think about the US Dollar, you’d almost immediately associate it with the United States. Most people assume the US dollar only works in the US, but in reality, countries using it stretch well beyond American borders. 

This matters because when you’re traveling, relocating, or sending money home, knowing what countries use the US dollar can save you time (and help you avoid bad exchange rates at the counter). It also helps you plan how you’ll pay, whether through cash, card, or bank transfer.

In such cases, retail-based money transfer options can be a real advantage. You can fund a transfer with cash at partner locations instead of relying on a bank card, then your recipient can receive funds through local payout options, depending on the country. So which countries use the US dollar, and which countries just accept it? Let’s break it down.

Where is the US dollar used today?

There are three main categories of places that use USD:

1. Official currency (USD is legal tender)
2. De facto currency (USD is used a lot in real life, even if it isn’t considered the official currency)
3. Widely accepted in tourism (USD may be accepted, but the rate is up to the merchant)

When dealing with currency, it’s important to remember that “official” isn’t the same as “accepted everywhere,” and “accepted” doesn’t always mean you’ll get a fair rate. 

What countries use USD as the official currency?

When USD is the official currency, it usually means most, if not all, of transactions are done in USD. Prices are set in dollars, payroll and contracts are typically denominated in USD, and you’ll usually get change in US coins (or local coins pegged 1:1 to the dollar). That’s why travelers and families sending support often find day-to-day spending simpler in these places. 

Ecuador (since 2000)

Ecuador adopted the US dollar during a severe economic and financial crisis, with dollarization implemented in early 2000⁵ to stabilize prices and restore confidence.

Does Ecuador use the US dollar?

Yes, USD is the national currency. You’ll typically pay in US bills and receive change in US coins (and locally minted cent coins in some cases).

When you travel to Ecuador, make sure you carry small bills ($1 to $10). It’s common for vendors to struggle with large notes, especially outside major cities.

El Salvador (since 2001)

You may be wondering: Why does El Salvador use USD? El Salvador made the USD legal tender in 2001⁸ through monetary integration, aiming to strengthen monetary stability and reduce currency risk.

Does El Salvador use US dollars everywhere?

In practice, yes. USD is widely used across El Salvador for daily transactions and pricing.

Small USD denominations are more practical in El Salvador, particularly for local shops/transport.

Panama (dual currency with the balboa)

Panama’s balboa has been pegged 1:1 to the US dollar⁹ since its introduction, and the USD is legal tender alongside balboa coins. This simply means that dollars circulate as everyday money.

Does Panama use US dollars everywhere?

For daily spending, US paper bills are standard. The “balboa” is mainly coins, used interchangeably at par with USD.

Cards are widely accepted in Panama, but cash is still preferred for taxis, markets, and small restaurants.

Zimbabwe (multi-currency system where USD is commonly used)

Zimbabwe moved toward using foreign currencies (including USD) after abandoning the Zimbabwean dollar in 2009 at a time of extreme inflation¹⁰, and USD remains widely used in many transactions.

Does Zimbabwe use US dollars everywhere?

Not officially “everywhere” in the same way as Ecuador or El Salvador. It’s a multi-currency environment, and rules have shifted over time, but USD is still frequently used in day-to-day commerce.

Having small USD notes gives you more flexibility for daily payments in Zimbabwe.

Countries that use the US dollar alongside local currency

In these destinations, you’ll usually see a local currency in circulation. But USD may still show up in pricing, tipping, and everyday purchases (especially where tourism is strong). Countries that use USD include:

• Cambodia (KHR + USD): The official money is the riel, but people use US dollars all the time. Prices are often shown in dollars¹¹.
• Myanmar: The official money is the kyat, but in tourist spots, US dollars are often accepted for travel-related purchases.
• Belize: Belize has its own dollar, but many places will accept US dollars. You’ll usually get change back in Belize dollars¹².
• Bahamas: The Bahamian dollar is worth the same as a US dollar¹³. Most tourist areas accept either one.
• Aruba: Aruba’s official money is the florin, but US dollars are commonly taken at hotels, restaurants, and shops.
• Bermuda: Bermuda’s dollar is worth the same as a US dollar¹⁴, and US cash is used a lot like local money.
• East Timor (Timor-Leste): US dollars are the official currency people use, but you might still see other currencies used in everyday life¹⁵.
• Marshall Islands: They use US dollars as their money, so pricing is basically in USD.
• Micronesia: They also use US dollars as their currency.
• Turks and Caicos: US dollars are the official currency, so you usually don’t need to exchange money.
• British Virgin Islands: They use US dollars as their currency, so you can pay in USD for most things.

Countries that commonly accept USD in tourism

So what countries accept US dollars? Below are the places that don’t use USD as their official currency, but you’ll often see US dollars accepted in tourist-heavy areas. 

USD acceptance is convenience-based, not guaranteed. Exchange rates can vary by merchant, and paying in USD can be less favorable than paying in local currency.

Why do countries use the US Dollar?

When it comes to the US dollar, countries don’t adopt it just because it’s popular. Most of the time, it’s a practical move. It’s one of the most powerful currencies in the world, and adopting it is meant to make money feel more stable, more trusted, or easier to use. 

If you’re supporting your family in a USD-friendly country, you don’t always want to rely on cards or online-only methods. Retail-based money transfer options (where you can fund a transfer with cash at partner locations) can be a real advantage for customers who don’t have (or don’t want to use) a bank card.

Benefits and drawbacks of using the US Dollar

Sending and using USD abroad: Practical tips

If you need cash, use ATMs from well-known banks in busy, well-lit areas. Standalone machines can come with higher fees and higher scam risk. When exchanging money, stick to licensed counters or banks, and always double-check the rate and count your cash before you walk away. USD is safest to use at banks, licensed exchange counters, and established businesses. Informal money changers and street exchanges can carry a higher scam risk.

For everyday spending, a mix of cash and card usually works best. Keep small bills for tips, taxis, and local markets. Use cards for bigger purchases when possible. If a terminal offers to charge you in USD instead of the local currency, that’s often Dynamic Currency Conversion, which can add extra fees. Choosing the local currency is usually the better deal.

Understanding the USD with BOSS Money

The USD is a strong global currency, but it’s important to remember: “official” isn’t the same as “accepted everywhere,” and “accepted” doesn’t always mean you’re getting a fair rate. Knowing where USD truly works helps you plan smarter. If you send money abroad to USD-based countries, BOSS Money can simplify the process with clear fees, flexible funding options, and practical payout methods.

Sources: all third party information obtained from applicable website as of December 18, 2025

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6. https://www.ecuatouring.com/ecuador-currency-tips/

7. https://www.wto.org/english/tratop_e/tpr_e/s383_sum_e.pdf

8. https://www.elibrary.imf.org/display/book/9781616353780/ch007.xml

9. https://www.investopedia.com/terms/forex/p/pab-panama-balboa.asp

10. https://www.investopedia.com/terms/forex/z/zwd-zimbabwe-dollar.asp

11. https://slowmadding.com/articles/how-does-money-work-in-cambodia

12. https://www.cahalpech.com/currency-in-belize-us-dollars-belize-dollars/

13. https://www.investopedia.com/terms/forex/b/bsd-bahamanian-dollar.asp

14. https://www.investopedia.com/terms/forex/b/bmd-bermudian-dollar.asp

15. https://costa-rica-guide.com/practical/money/dollars-accepted/

16. https://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp

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