Three Countries On The Dollar

Countries on the Dollar

Currency exchange rates should be top of mind for any prospective migrant leaving the USA. Rates fluctuate on a day-to-day basis, which can cause unexpected increases in the cost of necessities. To avoid this, several affordable countries use the dollar as their currency, avoiding the headache of exchange rates. As of September 2022, 11 countries 5 territories have the U.S. dollar as their legal currency according to Investopedia: Ecuador, El Salvador, Zimbabwe, The British Virgin Islands, The Turks and Caicos, Timor and Leste, Bonaire, Micronesia, Palau, Marshall Islands, and Panama.

Several countries in this list are great options if you want to reduce your cost of living and provide lifestyle benefits. Let’s take a look at a few of these places here!

Ecuador

This smaller, unassuming Latin American country does not get the attention we at Where to Expat believe it deserves. From beach towns to large high-elevation cities, to World Heritage Sites, Ecuador has a lot to offer foreigners. The cost of living can be up to 75% less than most major U.S. cities. The variety of places allows you to choose what lifestyle best fits you, from bustling cities on the water to quiet mountain towns.

El Salvador

El Salvador has made lots of headlines since its President, Nayib Bukele made Bitcoin legal tender in the country. Regardless of how you might feel about Bitcoin, the country also uses the U.S. dollar as its primary currency. This small country is affordable, however, not devoid of political or cultural issues. Many people have recently flocked to El Salvador, and the cost of living has and will continue to increase. However, the country is still attractive due to being relatively cheap.  

Panama

Another Central American country on the dollar is one of the most well-known. Panama already has a reputation of attracting U.S. retirees and expats through its friendly nation visa program. Panama City has everything you could ask for, but there is no shortage of places that can provide a great lifestyle without the big city price. Out of the three countries listed, Panama is the most expensive on average, but depending on where you are coming from, you can expect 30 to 40 percent reduction in cost. More if you find a smaller town. 

Conclusion

The U.S. dollar is the world reserve currency as of the date of the article. That may change in the future, but the way the world is looking, that might be a change that is a way off in the future. Central and South America are great places to find affordable, lively, and exciting places to live. Latin America is not known for its historical stability, however, these dollarized countries can help provide some more stability over other countries in the region on their own currency.