We all are well aware of the fact that impactful and mighty the US currency is! But, how many of us know that the US currency is the strongest one around the world?! It has such a great influence in so many regions and territories of the US it surely knows how to turn the wheels of the world economy around. And not to mention the quasi-use of the US currency in numerous other locations in the world. The Federal Reserve Bank of New York has reported a surprising fact! More than 50% of the printed American dollars are used beyond the mainland US! The amount is a shocking 65% of the total printed dollars!
Quite an impressive right? So, it’s always better to keep yourself up to date with the countries and territories that use the US currency for your convenience.
United States of America
The first and foremost in the list is the most obvious one! The Federal Republic of the United States of America itself! Laying in the North American continent, the US is arguably the most herculean nation on earth. Hosting the meccas of art, sports, movies, education, health, science tourism, and economy in the world – the United States of America is truly one of a kind. Not to forget the global influence of the American culture and widespread territories and sovereign treaties of US administration that has allowed the US to spread its magnificence all around the world. The long-run history of the rise of the United States and its associates also plays a big role in this regard. The world economy is single handedly overpowered by the US for centuries despite many mishaps and tough times.
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The official currency of the United States of America is used within the mainland US by a population of almost 318,636,000. The United States of America has a gross domestic product of GDP of $20.5 Trillion, as of 2018.
Commonwealth of Puerto Rico
Then comes the commonwealth of Puerto Rico which also uses the official American currency as their exchange system. Puerto Rico is a North-eastern Caribbean country hugging the Caribbean Sea and the Atlantic Ocean. It is an unincorporated territory of the U.S. After the Spanish-American war of 1898, Puerto Rico was conquered by the US and became an official yet sovereign part of the US. On that note, the Puerto Ricans are open to all the facilities of a US citizen despite their sovereignty and that includes the use of the US currency.
About 3,195,150 people are there in the Commonwealth of Puerto Rico and the GDP is about $103.1 Billion.
This country right here is a very interesting one. It is a South American country situated on the north-western side of the continent. It is lying right on the equator line. Hence the name ‘Ecuador’ in Spanish. The United States and Ecuador had more or less a relationship that is complicated. They had several disputes in the past over the use of Ecuador’s airports by US military. The dispute went on to recently happened Julian Assange’s harboring into one of the Ecuador’s embassies. This disagreement between the two countries might have turned into something more serious. But, an amazing cooperation between the two countries was noticed with Ecuador adopting US currency as their own. They adopted US dollar to be their one and only currency for the country.
Officially a sovereign, independent country Ecuador uses the US currency as their own, they do not possess any currency of their own. Yet, the use of US currency opened a great door of tourism in Ecuador. The American visitors can easily use their currency without the hassle of exchange or endorsement. Ecuador had officially started using the US currency as their own in 2000.
Ecuador has a population of 17,084,360 which is quite a significant number. They have a GDP of $108.4 Billion. The Ecuadorian coin costs a little less than the official US coin.
Republic of El Salvador
The Republic of El Salvador is situated in Central America and is hugging the Pacific Ocean by the south. It is the smallest country in Central America and also the least visited. It might be because of people hearing about crimes happening all the time in this region. But let me assure you, these crimes don’t affect travelers directly at all. It also shares borders with Honduras and Guatemala. The independent country El Salvador also uses the US currency as its official one. About 6,420,740 people live in the country. It has a GDP of $26.1 Billion.
El Salvador shares an interesting history about the usage of US currency which is deeply entangled with the end of the civil war and the downgrade of the economy. El Salvador used to use Colon as their official currency about 60 years ago from now, till they started adopting the US dollar as their currency.
Republic of Zimbabwe
This country right here is one of the mighty examples of the strong impact of the US currency in the world economic history. Although this country recently initiated their own currency known as “Zollar”, it’s worth mentioning. The Republic of Zimbabwe (formerly known as Rhodesia) used to use the US dollar as its official currency as their own. This Southeast African country had started using US currency and other foreign currencies as legal tender in 2009 after the hyperinflation of the Zimbabwean dollar. Zimbabwe has about 14,439,020 people in their country and the GDP is about $31.0 Billion. Recently, they have outlawed the use of US dollar.
Another unincorporated island territory of the U.S. surrounded by the western Pacific Ocean is Guam. Situated in Micronesia, Guam is a small beautiful country that is within the dominion of the US. Hence, the authority uses the US currency as the official currency of Guam. By 2018 the official population of Guam was about 165,770. This little island territory possesses a GDP of $5.9 Billion as of 2018.
The Virgin Islands of the United States
Virgin Islands are a group of island territories that belongs to the UK and the US distinctively. The US territorial part of the Virgin Islands – officially known as the US Virgin Islands uses the US currency as their official medium of change. The Virgin Islands share an exquisite history of being possessed by the US. In 1917, to protect the Panama Canal access in wartime the US had bought the Virgin Islands from the Danish and it goes by the ‘Treaty of the Danish West Indies’.
As of 2018, Virgin Island has a population of about 106,980 and a GDP of $3.9 Billion.
Democratic Republic of Timor-Leste
Timor-Leste or East Timor (officially goes as the Democratic Republic of Timor-Leste) is a Maritime Southeast Asian nation. This small island country is situated in the blending point of Southeast Asia and Oceania. It has a struggle history of seeking independence from the Portuguese colonization. The US currency was officially adopted by the National Consultative Council (NCC) because of the strong presence of the US currency in the world economy.
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Timor-Leste hosts about 1,267,970 people and has a GDP of $2.6 Billion as per the statistics of 2018.
Consisting of seven distinctive pacific islands, American Samoa is another significant U.S. island territory in the South Pacific Ocean. American Samoa was always a big interest point of the US as it hosts a powerful Naval Base that connects different important routes of Asia in the sea path. The American Samoa islands use the US currency as their official one just like any other US territory.
The population of American Samoa is about 55,470 and the official GDP of 2018 is about $711 Million.
Commonwealth of the Northern Mariana Islands
The Northern Mariana Islands are situated in the Pacific Ocean and an unincorporated territory of the U.S. The Northern Mariana Islands had become a part of the US when it entered the Trust Territory of the Pacific Islands (TTPI) – bestowed by the UN. It is a significant part of the US Commonwealth. The official transaction method for the Northern Mariana Island is the US dollar.
The Northern Mariana Island has a population of 56,880 and a GDP of $636 Million as per the 2018 data.
Federated States of Micronesia
The Federated States of Micronesia consist of an astonishing number of more than 600 islands! All these islands are scattered across the western Pacific Ocean. Pohnpei, Kosrae, Chuuk, and Yap are the four main island states of the Federated States of Micronesia. The FSM or the Federated States of Micronesia has become a part of the US territory right after World War II. It had become a part of the US through entering the ‘Nations strategic trust territory’ along with the ‘Trust Territory of the Pacific Islands’ – that are solely administered by the United States. The US currency is the official medium of transaction in the Federated States of Micronesia.
In 2018, the total population was about 112,640, and the GDP of about $401.9 Million.
Republic of Palau
The Republic of Palau is an archipelago region that consists of almost 500 islands in the Pacific Ocean. The Republic of Palau had entered the US administered Trust Territory of the Pacific Islands in 1947. Then in 1994 Palau had achieved full-fledged sovereignty along with a treaty – Compact of Free Association with the US. This independent and sovereign island state also uses US currency as the official one.
The Republic of Palau has about 17,910 population. The official GDP of the Republic of Palau in 2018 was about $284 Million.
The Marshall Islands are situated in the Central Pacific Ocean. The marshal Island is lying between the Philippines, Hawaii, and other Pacific territorial island states near the equator of the Pacific Ocean. It consists of many coral atolls and chains of volcanic islands. Just like the Republic of Palau, the Marshall Islands also had been a part of the directly US administered Trust Territory of the Pacific Islands from 1947 to 1978. Later on, through the Compact of Free Association with the US, it gained its sovereignty. Yet, just like other US territorial and associated states, it uses US currency as the official currency. The population of the Marshall Islands is about 58,410 and the GDP is $221.3 Million.
Apart from all these prominent regions and territorial states, the US currency is also used in a semi-official way in prominent countries like Canada, Mexico. In the Bahamas, Barbados, Bermuda, the Cayman Islands, Sint Maarten, St Kitts, and Nevis, the ABC Islands of Aruba, Bonaire, Curacao, Belize, Panama, Costa Rica, Nicaragua and Bonaire, Sint Eustatius, and Saba islands (Caribbean Netherlands) the US currency is also widely used for the advantage of thriving tourism in the regions. Moreover, for any standard transaction medium in many East Asian countries, the US dollars are taken into count. The US currency is also a prominent example of the top-notch American diplomacy and friendship among the nations. Such as, the British Virgin Islands and the Turks and Caicos used the US currency as their official method of the transaction too as a sign of their great friendship with the United States of America. To add further, in any foreign exchange the US currency is a go-to choice in most cases to ease the issue of currency rate imbalance. The US greenback not only is used as a daily transaction medium throughout the world despite many economic drawbacks it has stood still through thick and thin with its glory to influence the world economy and remains as the huge commercial exchanges’ standard.
- GDP Source: The World Bank (2018)