What is an example of a country that makes use of another nations currency

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8 February, 18:00

What is an example of a country that makes use of another nations currency

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Alessandro Odom · Answer 1

Panama

Explanation:

The official currency in Panama is the Balboa which is divided into 100 cents.

Since 1904 one Balboa equals one American dollar ans since then the American dollar is used as the official currency. The dollar is also the legal tender there. There are some Balboa coins in circulation but paper money is only available in USA dollars.

Panama uses the USA dollar so that it can benefit from its stability and this currency makes the country more interesting and attractive for foreign investments.

Martha Petersen · Answer 2

Some countries only use foreign currencies such as the U. S. dollar in Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Turks and Caicos, British Virgin Islands, etc.