Why does El Salvador use United States' currency?

Question

El Salvador Money

Answer 1

The government of El Salvador sold to The United States the image of a " stable economy " where it might experience the dolarización. What they could foresee, neither one nor another government, they were the cataclysms of the unstable land that supports this economy.

Answer 2

The Salvadoran government introduced the US dollar as legal tender in 2001, in order to limit the possibility of implementing open market monetary policies.  Why they would want to do that, I'm not totally sure, not being an economist.  They gradually phased out the previous Salvadoran currency (called the colón).

Check out the link below for more detail.

Answer 3

A lot of smaller countries can't afford to create and maintain their own currency, so they use the currency of a larger country

Answer 4

Dollar not is a good money for the economy of a poor and sad country like El Salvador, the economy is falling, because is a country of the third world... Dollar can be a good money but no for countrys like El Salvador...

Stupid Salvadorean president... we hate you Elias Antonio Saca...

Answer 5

do you known what means  the colonial country?