El Salvador Colon (SVC)

The El Salvador Colon (SVC) is the official currency of El Salvador. It was first introduced in 1892 by the Salvadoran Bank and has since become a symbol of the country’s independence. The currency is named after Christopher Columbus, whose Spanish name was Cristóbal Colón.

The El Salvador Colon is subdivided into smaller units called “Centavos.” One Colon is equal to 100 Centavos. However, it’s important to note that Centavo coins are not commonly used in daily transactions, and the currency is primarily used as a unit of account. In practice, the U.S. dollar is widely used for everyday transactions in El Salvador.

The currency is pegged to the United States dollar (USD) at a fixed exchange rate of 1 USD = 8.75 SVC. This means that the value of the Colon remains stable in relation to the U.S. dollar. The fixed exchange rate provides stability and helps to mitigate inflationary risks in the country.

El Salvador adopted the U.S. dollar as its official currency in 2001, making it one of the few countries in the world to use a foreign currency as its legal tender. As a result, most financial and commercial transactions in El Salvador are conducted in U.S. dollars. However, the El Salvador Colon is still used in some local stores and for certain transactions.

The use of the El Salvador Colon has declined over the years due to the country’s economic stability and the widespread acceptance of the U.S. dollar. The stability of the dollar reduces inflation risks and makes trade and commerce more convenient and stable.

In summary, the El Salvador Colon (SVC) is the official currency of El Salvador. Despite being pegged to the U.S. dollar, its usage has diminished due to the widespread acceptance of the dollar in the country’s economy.