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El Salvador - US Dollar
El Salvador uses the US Dollar as its currency. Each dollar is divided into 100 cents and the dollar is perhaps the most instantly recognisable symbol of currency, anywhere in the world, denoted by the symbol $.
Since in El Salvador, the dollar used is in fact the US dollar, it is identified by the letters US$.
Why is the US Dollar used in El Salvador?
There is something somewhat remarkable about the US dollar being used in a Central American country such as El Salvador, since it seems somehow a little incongruous.
Prior to 2001, the colón was used in El Salvador. This was in fact the national currency that was in use between the years 1919 and 2001. It was brought in to replace the peso and was a decimal currency, with each colón worth 100 centavos. The currency was identified by the letters SVC.
Initially the colón was pegged to the US dollar. Like other Spanish influenced currencies, the name was chosen as a reference to Christopher Columbus.
Then in 2001, following a significant period of unrest, the decision was taken that the US dollar should be adopted. This followed an extreme demonstration of people power, when in the year 2000 some 2,000 protestors took more than 500 government employees hostage for several hours, demanding that the President take urgent action to radically alter the economy and stop the grinding poverty that people were forced to live in. So the die was cast, radical action needed to be taken or it looked like the country was going to degenerate into civil war and hence, the dollar which was at that time a relatively strong currency was chosen, to try and give the economy some stability and ease the levels of poverty.
Getting Hold of US Dollars in El Salvador
Since El Salvador has adopted the US dollar it has been able to establish a good financial structure, which means that there are plenty of ATM facilities available. These can be found in all the major towns and cities as well as in shopping centres or even at service stations, so it is quite easy to make sure that you have access to dollars.
However, if you plan to use your credit or debit card in El Salvador, it is worth notifying your bank or card provider before you go, that your card will be used in El Salvador. It is not a common destination for travellers and so your bank or card provider may assume that it is being used fraudulently and put a stop to it, if it notices that it is being used in this country. This may seem like aggravation but on the other hand having your card stopped when you are thousands of miles away is just so much hassle, that it isn't worth the risk.
Traveller's cheques should also be taken in the form of US dollars and you will have no problems exchanging them at either a bank or a hotel or even a bureau de change. You will need your passport to be able to exchange them though. If you don't take the cheques in the form of dollars, it is still quite straightforward to cash them, it is just easier in dollars.
Note that if you are taking traveller's cheques, the banks are open on Saturday mornings, usually till 1 pm, but they may only offer a very limited service, so for changing money, you are better off going during the week.
It is always best to carry notes of small denominations, i.e. less than $50 notes/bills, since if you have a $100 bill then it will be refused at all shops, even the larger ones, with small notes being the preferred options. If you do get a large bill from an ATM simply take it to a bank and exchange it for smaller notes: you should not be charged for this, but may not be greeted with a smile, more a shrug!
Safety Issues
El Salvador may not be the safest country in the world to visit, but conversely, it is not the most dangerous. Indeed it is significantly safer to visit now than it used to be in the past, predominantly because it is now a democratic country and the economy is starting to both grow and stabilise, so it is much more peaceful than it has been for a long, long time.
However, the fact that it was so unstable for such a long time has left quite a legacy in the country. People are almost immune to violence in some ways and whilst it is not the case that everyone is armed and ready to shoot everyone else, there are a number of people in the country who do carry firearms. The risk of serious crime in El Salvador is often described as 'critical' and it is a real threat.
Recent crimes against people driving have also increased of late, as people have had their cars 'car-jacked' by armed robbers.
The capital of El Salvador, San Salvador is generally considered to be a fairly unsafe city, since it has one of the worst murder rate statistics not just in Central America, but in the world! However, that being said, it is really hard to know if these crimes are random or if they are actually connected to street gangs. Street gangs are very common and very 'tribal' in San Salvador and often there are fights between the two parties which results in the death of one or more members. So although the murder rate is truly abysmal, it is not clear just how risky it is for foreigners and people not associated with the gangs. Just note that there are something like 4,000 people killed a year with almost 60 violent deaths for every 100,000 people.
So it is a country where you have to keep your eye on the ball and make sure that you do not wander off from the main streets and if you do see 'gang' members congregating at any point, then simply walk away. This is not street entertainment, this could potentially become a bloodbath and despite the efforts that the government has made to try and control the gangs and stop their activities, there has been no difference to the crime rates: so be wary and on your guard at all times.
Women who are travelling alone should try to find a buddy to travel with in El Salvador, since you may find that you get hassled when out and about. There is no evidence to suggest that you will be subject to any more serious crimes, than a lone male, but the hassle can become quite tiring and to some extent aggravating.
Finally, as if murder and fighting were not bad enough, there is a risk of earthquakes in El Salvador and these have historically been quite bad. Obviously it is hard to know when and if an earthquake will strike, but it is a risk that you need to be aware of. In addition, the hurricane season is between June and November, when there can be a very real risk of landslides and or flooding.
The Upside to El Salvador
However, there are some positive aspects to El Salvador and one of the best things that travellers report after they have visited the country is just how warm and friendly the people are. They do not see all that many visitors, mainly because there are no wondrous sights to see, if compared to other Central American countries and many visitors are deterred by the threats of both earthquakes and violent crime. So they tend to bypass El Salvador. In many ways this is great, because if you are fed up travelling to countries that seem to be packed with tourists, then El Salvador offers a really refreshing change, with not all that many travellers around.
The people are pleased to see travellers and to share with them some of their experiences and what life has been like over the last twenty or thirty years, when the country really was troubled.
One thing that travellers should be sensitive to is the fact that many people feel that the move to using the US dollar was a bad move and that it has made El Salvador more dependent on the US and has weakened its position. So it is best not to sing the praises of the US dollar and unless people talk about it specifically, it is best to simply stay away from discussing this issue.
Costs of everything are low in El Salvador: it is actually a very cheap country. You can get by on very little money or even upgrade to quite luxury accommodation, which is still quite cheap. Food and drink are also very reasonably priced and the food and drinks on offer are quite varied, flavoursome and sometimes, staggeringly cheap, so simply enjoy. Even traversing the country by bus, which is the usual way is relatively inexpensive. However, this is really because the country is so poor and so it is best not to whoop with glee about the prices, simply accept that they are so low and enjoy.
Overview
El Salvador is a country that has really experienced some terrible times, but it is starting to re-build itself. The tourist facilities are limited and the country as a whole is not geared up to accommodating huge numbers of tourists. Yet this gives it a charm and an air of uniqueness, that can be sadly lacking in other parts of the world, even in Central America.
To some extent the advent of more tourists would certainly help the economy regain some strength, but on the other hand it is very difficult to see how the tourist trade can really be significantly increased, given the very real threats of crime and quite serious crime at that.
Since the position of the country seems relatively stable, but may in fact change at any point (uprisings are not uncommon), it is always worth checking out just what the situation is, before you finalise any travel arrangements to El Salvador. A government website such as http://www.smartraveller.gov.au/ will be able to provide up to date and relevant information.
Comment
I hadn’t realised they used the US dollar in El Salvador. It’s obviously very different from the main places we all know in America, so that’s probably why it came as a surprise that they use the same currency. Not that it matters really – some people want us all to use the same global currency, so I guess it doesn’t make a jot of difference if people use the US dollar in El Salvador now!
I don’t think I’d pay it a visit anytime soon though – it doesn’t seem particularly safe or secure to me. I think I’ll stick to the UK for a while!
— Kate · Oct 13, 10:22 AM · #
El Salvador sounds like a bit of an oddity to me. I didn’t realise it used the US dollar as its currency, but since the US can be quite expensive it must be nice to visit a country that is a lot cheaper with your dollars.
I’m not sure I would want to go though. It doesn’t really stand out as the kind of place I would enjoy, although I’m sure it is very nice in places. We all have our own idea of what makes a great holiday, and even though it is more expensive I would still prefer the US.
— Ben · Nov 24, 01:49 PM · #