El Salvador currency guide

If you plan to send money to El Salvador or travel there soon, you’re in luck: El Salvador’s primary currency is the US dollar. The Central American country adopted the dollar as its official currency in 2001 to bring economic stability and simplify cross-border transfers.

Whether you’re visiting or sending remittances to family back home, this comprehensive guide covers what you need to know about money in El Salvador.

What is the currency in El Salvador?

If you’re carrying US dollars in El Salvador, you’re all set. The country made the switch decades ago, and today, dollars are used for everything.

In 2021, El Salvador took another bold step when it became the first country to declare bitcoin a legal tender. However, a recent Yale survey found that El Salvadorans have been slow to adopt the cryptocurrency, despite the government incentivizing its use. Most locals still turn to dollars for daily spending.

The colón (SVC), once El Salvador’s official currency, is now mostly a relic. It’s still technically legal tender, but the majority of businesses in El Salvador won’t accept it. And currency exchange services, like Western Union, focus on the US dollar instead. Some banks may exchange it, but dollars remain the currency of choice.

History of El Salvadoran currency

El Salvador introduced the colón as its official currency in 1892, naming it after Christopher Columbus (Cristóbal Colón in Spanish). The colón gradually replaced the peso and officially took its place at par (meaning at equal value) in 1919.

However, economic instability in the late 20th century ultimately led the government to stop using the colón and adopt the US dollar as the primary currency in El Salvador.

Since then, the dollar has made everyday transactions easier for locals and visitors. And while bitcoin was added as legal tender in 2021, it’s rarely used for daily shopping and expenses. For most, the dollar remains the most practical choice.

How much is El Salvadoran currency worth?

Because El Salvador’s currency is the US dollar, you won’t have to worry about checking live exchange rates or converting money before traveling there.

Historically, colón was pegged at 2 per 1 USD. But by the time El Salvador fully adopted the dollar, the value had shifted. Today, banks still exchange old colónes at a rate of 8.75 per 1 USD.

Tips for traveling with money in El Salvador

When using money in El Salvador, stick with small bills like $1s, $5s, and $10s, since some vendors may not accept large bills. Also, make sure to keep them clean and crisp, as many banks won’t deposit damaged currency.

It’s also wise to store your cash safely. A travel wallet tucked in your front pocket or inside a zippered bag is a smart move, especially in crowded areas.

ATMs are common across El Salvador. Bring a travel-friendly debit card with no or reasonable foreign transaction fees, and stick to ATMs in well-lit, populated places. The US State Department recommends staying alert while withdrawing money. Though crime in El Salvador has declined in recent years, it’s still a good idea to stay aware of your surroundings.

Finally, let your bank know about your trip before you fly. Notifying them beforehand helps prevent your card from being flagged for suspicious activity. A quick phone call or message through your banking app is usually all it takes.

Using money in El Salvador

Here’s what to expect when spending money in El Salvador, plus a few tips on local customs.

Can you use US dollars in El Salvador?

Yes, you can use US dollars in El Salvador, as it’s El Salvador’s primary currency. You’ll see prices listed in dollars everywhere, from restaurants to roadside stalls, and ATMs dispense USD as well.

Credit and debit cards are accepted at most hotels, shops, and restaurants in cities and tourist areas. Salvadorans also often use $1 coins instead of bills, so don’t be surprised if you receive them as change.

Tipping etiquette in El Salvador

It’s common to tip 10% at restaurants in El Salvador. However, check the bill before leaving a tip, as many restaurants automatically add a gratuity. Taxi drivers don’t expect extra money in El Salvador, but many people round up the final bill.

When possible, tip hotel bellhops and cleaners. Tipping $1 per bag and $1 to $2 per night in the hotel is customary. Finally, tipping tour guides anywhere from $5 to $10 is common, depending on the length of the tour.

Send money to El Salvador with Western Union

Need to support family or friends in El Salvador? With Western Union, you can send US dollars directly. There’s no need to worry about currency conversion or tracking fluctuating exchange rates.

Your recipient can even pick up money in El Salvador at a Western Union agent location. Make sure to double-check your recipient’s details before sending so that your money reaches the right person.

However, it’s important to use a service with a trusted reputation and top-tier security features. Western Union fits the bill, as all transactions come with the protection of features like Touch ID, data encryption, transfer tracking, and PCI DSS compliance.

Wherever you are, it’s easy to support family or friends in El Salvador. Send money online or through the Western Union^® app today.

Explore more currency guides

Planning to visit more countries in Latin America? These guides can help you understand local currencies, exchange tips, and how to get the most value when converting US dollars:

• Mexico currency guide: the Mexican peso (MXN)
• Colombia currency guide: the Colombian peso (COP)
• Dominican Republic currency guide: the Dominican Peso (DOP)
• Brazil currency guide: the Brazilian real (BRL)
• Peru currency guide: the Peruvian nuevo sol (PEN)
• Argentina currency guide: the Argentinian peso (ARS)
• Costa Rica currency guide: the Costa Rican colón (CRC)