Countries That Use the U.S. Dollar

Countries That Use the U.S. Dollar

By Troy Adkins Updated March 27, 2022  Reviewed By Michael J Boyle

There's no doubt that the U.S. dollar has immense power. Its value is determined by the strength of the American economy, which is one of the reasons why it's the world's dominant currency.

Not only is it the world's most commonly used currency, but it's also the world's reserve currency, meaning it's held in large quantities by central banks around the globe. Commonly known as the greenback, it's also one of the most commonly traded currencies on the foreign exchange market.

KEY TAKEAWAYS

The first Federal Reserve Note was issued one year after the Federal Reserve was formed.

Five U.S. territories and 11 foreign nations use the U.S. dollar as their official currency.

The U.S. dollar is also used in conjunction with local currencies in several different popular destinations for American tourists.

Under the Bretton Woods Agreement, other currencies were pegged to the U.S. dollar to promote an efficient international monetary system.

Although the Bretton Woods Agreement terminated approximately 30 years after ratification, the U.S. dollar remains the reserve currency for most nations.

Understanding the Countries That Use the U.S. Dollar

While its strength as a powerhouse may not be a shock, it may come as a surprise that the dollar is also the official currency of a host of U.S. territories and other sovereign nations around the world. It's also the quasi-official currency of many other nations that commonly accept U.S. dollars, in addition to their local currency.

If you're an avid traveler, someone who does business overseas, or an ex-pat, you'll want to keep reading. We've compiled a comprehensive list of places around the world that use the greenback as an official currency.

Official Use of the U.S. Dollar

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