I’ve been wondering lately about the US dollar. Countries print their own currencies, I know, but what about all that US currency that’s being used in other spots in the world?
I’ve travelled quite a bit in the third world, in SE Asia, and in South America, India and Nepal and while there was local currency the REAL currency was the US Dollar.
Their own currencies are subject to often frightening devaluations and fluctuations, so I do understand why.
My question is how much US currency is really being used in other countries. Does anyone keep track of such things? It must be a lot based on what I’ve seen. Is there anyway to tell this?
I know that countries can’t just go about printing more currency willy-nilly, so how do they keep track of whats for domestic use and what’s not? Or does it matter?
In atleast one country (besides of course the U.S.), I believe, the U.S. Dollar IS the official currency. I’m pretty sure that Panama, though it class them Balboas, uses the U.S. dollar as its official currency.
I had heard that the majority of $100 bills were outside the US. As you point out, it is due to local inflation. Just treat US dollars as light weight gold. Swiss, Germany, money etc would also work, but, due to its size and population, the US has more stable currency than other countries, so it is more common around the world.
The U.S. dollar is also almost the official currency of the Bahamas. They have their own currency, fixed at a 1:1 ratio to the U.S. dollar, but it’s easy to travel there & never see anything other than U.S. currency. They also have $3 bills, which are hard to find.
Not always. I know that (at least in the recent past… I’m having a hard time finding out if it’s still the case) several countries print their currency here in the USA; I believe the printing facility is actually located in (here we go again…) The Bronx, NYC.
I assume they do this for security and quality control reasons.
The American Bank Note Co. may still be printing foreign currency, but alas it it no longer doing so in Da Bronx. I found this mention on the web:
… the Bronx Apparel Center serves as a monument to New York’s industrial past. Built in 1911, this mammoth brick structure once housed the American Bank Note Company. Serving as a mint for such countries as Mexico and Haiti, the Bank Note Company not only issued currency, but also printed travelers’ checks and lottery tickets.
In this part of the world, US currency would be regarded as a novelty, “play money”. The only time I have ever seen it used locally is when foreign sailors (usually Indian, Japanese, Korean or a mixture of Asian races) present US bank notes to a local trader, instead of Australian currency.
This link if I didn’t screw it up, indicates that , among other, the private firm of Thomas de la Rue prints notes for many countries. As did/does The American Banknote Company.
The majority, ~70 per cent, of Cash is outside the U.S. for the reasons you cited. The DM is pretty close to being as trusted as the U.S. Dollar, but with the euro being fielded soon, it would appear that the Dollar is King.