While most countries have their official currency, a few surprising places do not. Instead, these nations rely on the currencies of other countries for their day-to-day transactions. This might seem unusual, but it can help these countries stabilize their economies and avoid the risks of managing their own money.
According to the International Monetary Fund (IMF), this article includes some of the countries that don’t have currency.
1. El Salvador
El Salvador, a small Central American country, adopted the U.S. dollar as its official currency in 2001. Before that, it used its currency, the colón. By switching to the dollar, El Salvador aimed to stabilize its economy, attract foreign investment, and reduce inflation.
2. Ecuador
Ecuador abandoned its currency, the sucre, 2000 after facing a major financial crisis. The country switched to the U.S. dollar to regain economic stability.
This change allowed Ecuador to curb inflation and attract foreign investment. Using the dollar has brought economic stability but also limits Ecuador’s control over its monetary policy.
3. Kosovo
Kosovo, a small country in the Balkans, uses the euro as its official currency even though it’s not a member of the European Union. Since Kosovo declared independence from Serbia in 2008, it has relied on the euro to support its economy.
Using the euro has helped Kosovo maintain stability, especially in its trade relationships with EU countries.
4. Montenegro
Montenegro, another Balkan country, also uses the euro without being a member of the EU. After gaining independence from Serbia, Montenegro adopted the euro to promote economic stability and ease trade with Europe.
5. Liechtenstein
Liechtenstein, a small European country, uses the Swiss franc as its official currency due to its close ties with Switzerland. The Swiss franc’s stability has contributed to Liechtenstein’s strong economy and stable financial sector.
By adopting Switzerland’s currency, Liechtenstein benefits from the same financial stability without needing its currency.
These countries without a currency each chose to adopt a foreign currency for unique reasons. Their examples show how nations adapt their economies to ensure stability and growth.
(Nigerian Tribune)