Countries That Use The U.S. Dollar

While it is no surprise that the U.S. dollar is the official currency of the United States, it may surprise some that the dollar is also the official currency of a host of U.S. territories and sovereign nations around the world. In addition, it’s the quasi-official currency of many other nations that commonly accept U.S. dollars in addition to a local currency. Let us take a look at the places where the U.S. dollar is usually accepted for payment.

Official Use of the U.S. Dollar

In 2014, over 318 million people in the United States used the U.S. dollar to conduct more than $17 trillion dollars of economic activity. Prospective travelers may like to know that there are five U.S. territories and seven sovereign countries that also use the U.S. dollar as their official currency of exchange. Collectively, more than 358 million people throughout the world used the U.S. dollar as their official currency of exchange, which in turn translates into more than $17.25 trillion dollars of economic activity. 

The table below provides an overview of the U.S. territories and independent sovereign nations that use the U.S. dollar as their official medium of exchange.

Source: Encyclopedia Britannica, Inc.  Britannica Book of the Year (2015)

The British Virgin Islands and the British Turks and Caicos islands also use the U.S. dollar as their official currency of exchange.

Quasi-Use of the U.S. Dollar

The U.S. dollar is also widely used throughout the world as a quasi-currency of exchange. While it should be no surprise that the U.S. dollar is widely accepted for commerce in both Canada and Mexico, the U.S. dollar is accepted in numerous tourist destinations, including the Commonwealth of the Bahamas, Barbados, Bermuda, the Cayman Islands, Sint Maarten, St Kitts and Nevis, the ABC Islands of Aruba, Bonaire, Curacao, and the BES Islands, which also includes the island of Bonaire, as well Sint Eustatius and Saba, now collectively known as the Caribbean Netherlands. (Read Find The Top Caribbean Islands For Retirement)

The U.S. dollar is also used as a quasi-currency in a host of popular U.S. retirement destinations, including the countries of Belize and Panama, and in some places in Costa Rica. U.S. dollars are also widely accepted in Nicaragua, and people in the U.S. military can likely attest that the U.S. dollar is gaining widespread popularity throughout the Philippines (read more This Asian Nation Is Poised For Steady Growth). For the truly adventurous traveler, the acceptance of the U.S. dollar can be tested in countries such as the Republic of the Union of Myanmar (Burma), Cambodia, Liberia, the major cities of Vietnam, and the Old City of Jerusalem.

The Bottom Line

The U.S. dollar is the most widely used currency in the world because of its stability. Barring some unforeseen catastrophe, the U.S. dollar will likely remain the global currency of choice until such a futuristic time when a global digital money system is invented and accepted. People planning on using the U.S. dollar outside of the United States should notify their banking and credit card company as a precaution from having their accounts frozen due to suspicious overseas activities. Consumers should also reach out to their bank and credit cards to clarify any foreign currency transaction fees.