Originally Posted by Orchidflower
Happened to look at the foreign currency section of the Wall Street Journal this morning, and didn't know that--like Panama--Ecuador, also, uses the U.S. dollar as currency. I wonder how many other countries use the U.S. dollar?
I've done some significant reading on dollarization before. It is a pretty interesting study if you are into economics. Various places have dollarized for some pretty diverse reasons.
Panama has been dollarized since the country was created out of Columbia in 1904. They issue thier own coins, which correspond to US coins in value, size, and composition.
Other places your dollars are officially welcome:
Ecuador (issues own coins)
Panama (issues own coins)
New Country - US sponsored basically
East Timor (issues own coins)
British Possession, but due to proximity to US and tourism
Turks and Caicos
British Virgin Islands
Former US Trust Territories of:
Fed States of Micronesia
A number of countries also peg local currency to the USD.