In 2024, the countries that have the United States dollar as their official currency are the United States itself, U.S. Virgin Islands, American Samoa, Northern Mariana Islands, Guam, Puerto Rico, Ecuador, El Salvador, Panama, British Virgin Islands, Marshall Islands, East Timor, Bonaire, Federated States of Micronesia, Palau, and Turks and Caicos Islands.
Additionally, there are countries or territories where the local economy is de facto dollarized, even if the government does not officially declare the currency as legal tender. This means that a significant portion or a large part of the country’s economy operates with U.S. dollars, despite having another official currency. For example, this would be the case in Venezuela.
Furthermore, in many American tourist destinations, the United States dollar is commonly accepted, such as in the Bahamas, Barbados, Bermuda, Cayman Islands, Curaçao, Costa Rica, Belize, or Nicaragua, among many other destinations.
Similarly, in many international tourist destinations, the American dollar may be accepted exceptionally if we offer to pay with it, although the exchange rate applied compared to the real price in the local currency will be different from the official exchange rate, with a margin that may sometimes be somewhat excessive.
Nevertheless, the United States dollar can be exchanged for local currency in any country in the world (at banks or currency exchange offices), as the American dollar is the quintessential global reference currency: it is widely accepted in international payments, most international companies hold accounts in dollars, it is commonly accepted and used in global trade, many citizens of countries with high inflation save in dollars due to its stability, and it is the leading global reserve currency, among other reasons.
In summary, the United States dollar, although it is legal tender and de facto in circulation in the real economy in several American countries and territories, maintains its monetary value in any country worldwide.
Where to get the best exchange rate for the U.S. dollar?
Without a doubt, when traveling, the best exchange rate for converting any currency into American dollars is obtained by always paying with a credit card, as it is by far the cheapest option available in the market.
On the other hand, if you want to carry some cash, the best option would be to exchange your currency for U.S. dollars at your bank, where you will be subject to a margin of approximately 5% compared to the official exchange rate.
Therefore, to save as much as possible when converting to dollars, it is recommended to always pay with a credit card (as you can see in this analysis, for the year 2024, Wise card offers the best exchange rates when paying at establishments and the lowest costs for withdrawals at international ATMs), and only exchange a small amount into dollars at your bank if you want to have some cash in case of an emergency.
Denominations of the U.S. dollar
If you are not familiar with the denominations of U.S. dollar bills and coins, here are the following:
Bills: $100, $50, $20, $10, $5, $2, and $1.
Coins: $1, $0.50, $0.25, $0.10, $0.05, and $0.01.
It is advisable to avoid carrying $100 bills, as many establishments may refuse to accept them unless it is for a substantial purchase due to their high denomination.
Furthermore, outside of the United States, if the bills have a very old issuance date or are significantly worn or damaged, they may not be accepted.
In conclusion, when converting to dollars, try to receive a variety of bills with denominations lower than $100 and ensure they are relatively new: issuance date no more than 15 years old and bills that are not stained, torn, or heavily worn.