What currency does El Salvador use?

El Salvador is one of a handful of countries that uses another nation’s currency as its own. Since 1 January 2001 the official currency has been the United States dollar.

Why

The colón had been pegged to the dollar since 1993. Dollarisation in 2001 locked that in, eliminating exchange risk and inflation volatility — and also eliminating the country’s ability to set its own monetary policy. The debate over whether that was the right trade has never fully closed.

The fixed conversion was 8.75 colones to the dollar. Colones left circulation quickly and you will not encounter them.

Bitcoin

Legal tender since September 2021, with merchant acceptance made voluntary in January 2025. Practically, dollars are the currency and bitcoin is an option in a small number of places — see bitcoin in El Salvador.

Practicalities

Bring small notes. Twenties and below. A comedor cannot break a fifty, and neither can a taxi at six in the morning.

ATMs are everywhere in cities and dispense dollars. Fees run $3–6 plus whatever your own bank adds. Withdraw larger amounts less often.

Cards work in the capital, at hotels, supermarkets and better restaurants. Pupuserías, buses, markets, tuk-tuks and most of the coast are cash.

Torn or heavily marked notes are frequently refused. Check what the ATM gives you.

Tipping — 10% is often already on the bill as propina sugerida. Look before you add more.

For moving money into the country, the send money guide compares the services properly.