What is the official currency of El Salvador?

The official currency of El Salvador is the United States dollar. It became legal tender in 2001 and is the country’s primary currency for prices, accounting, wages, and everyday transactions.

El Salvador adopted the dollar through the Monetary Integration Law, which took effect on 1 January 2001 during the presidency of Francisco Flores. The Salvadoran colón, used since 1892, was converted at a fixed rate of 8.75 colones to one U.S. dollar and gradually disappeared from everyday circulation.

The colón is an important historical source of confusion. It remains recognized in some legal descriptions as legal tender, but it is no longer used in ordinary transactions. Bitcoin was briefly granted legal-tender status in 2021, but reforms enacted in 2025 made acceptance voluntary and removed its role as an official currency. The U.S. dollar remains the practical and official monetary standard.

El Salvador’s dollarization also means the country does not issue its own independent national currency or control a separate exchange rate. U.S. coins and banknotes circulate alongside locally familiar price conventions.