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Which Countries Use the US Dollar As Their Official Currency?
In addition to five U.S. territories, 11 countries adopted the U.S. dollar as their official currency: Ecuador, El Salvador, Zimbabwe, The British Virgin Islands, The Turks and Caicos, Timor and Leste, Bonaire, Micronesia, Palau, Marshall Islands, and Panama.
https://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp
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Although dollars are used commonly in many countries, the US dollar is really legal tender in only eight countries. These countries are: The United States of America, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, East Timor and Zimbabwe.
https://www.global-exchange.cl/en/currencies-of-the-world/us-dollar
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Forget de-dollarization – Argentina may adopt the greenback as its currency and abandon the peso
Jun 13, 2023, 2:14 AM MYT
- Argentina’s presidential front-runner wants to do away with the peso and install the US dollar.
- Javier Milei has said this could help tame inflation, which hit 109% in May.
- If Argentina adopts the greenback, it would become the biggest economy to dollarize.
While some emerging economies have demonstrated an eagerness to untangle themselves from the dollar’s dominance, Argentina may go in a radically different direction.
The front-runner in Argentina’s presidential election has proposed ditching the peso completely, and instead replacing it with the US dollar.
Javier Milei, an economist and libertarian congressman, is vying to win the presidency in October and pitches the greenback’s adoption as a solution sky-high inflation, which hit 109% in May.
“The peso melts like ice in the Sahara Desert,” Milei is known to say, according to Bloomberg.
Over the last year, the peso has lost half its value against the dollar, which makes imports more expensive. Meanwhile, benchmark interest rates sit at 97%.
Adopting the dollar as the national currency would mark a radical departure from Argentina’s as well as other countries’ efforts toward de-dollarization, which has largely focused on using other currencies for international trade and reserves.
In April, Argentina said it will start buying the bulk of its Chinese imports in yuan instead of dollars. And in January, Brazil and Argentina said they are preparing to launch a joint currency.
Despite those efforts, Argentine consumers are already using US dollars in day-to-day transactions and as a form of savings.
“Argentina is already dollarized, de facto dollarized. So Argentines have already chosen to use the dollar to save money and to save themselves against the inflationary tax,” former Wall Street investment banker Emilio Ocampo, who originated the dollarization idea that Milei is proposing, told Bloomberg.
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Other countries, such as Ecuador, already use the US dollar as their national currency, some of which adopted it in the wake of economic crises. If Argentina follows suit, it would be the largest economy to dollarize.
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weehingthong 