25 currencies are officially acceptable for use in North America. The US dollar is the common currency used in North America. It is also the world’s largest reserve currency with the resulting economic value benefitting the US. However, the US dollar as a reserve currency has a negative effect on the American exporters because exports increase its value. The US dollar is a standard currency in the international commodity markets and has also been adopted in several countries as the official currency. The US dollar also exists alongside other currencies in some countries where it exists as a legal tender, a situation known as semi-dollarization. Also, in some countries, the dollar exists and is accepted but not recognized as a legal tender.
The Dollar Currencies
The East Caribbean dollar is the most popular currency in several North American countries. It is pegged to the US dollar and has been existence since 1976. The East Caribbean dollar was initially pegged on the Starling Pound. The East Caribbean Currency Authority was established in 1965 to distribute the currency. The East Caribbean currency is used in seven countries including Antigua and Barbuda, Dominica, Granada, Montserrat, Saint Lucia, Saint Kitts and Nevis, and Saint Vincent and Grenadines. The East Caribbean dollar is represented by the dollar sign ($) or just as EC$ to distinguish it from the US or other dollar currencies in the region. The Canadian dollar is a currency used in Canada and commonly uses the dollar sign ($) or Can$ to distinguish it from other currencies with the dollar denomination. The currency is sometimes referred to as loonie because of the loon image on the one-dollar coin. It is the fifth most held reserve currency in the world and accounts for about 2% of the world’s reserve. The coins are issued in the denominations of nickel, dime, quarter, and piece. Bahamian dollar has been the currency of Bahamas since 1966 and is abbreviated as B$ to distinguish it from other dollar related currencies. B$ is pegged to the US dollar on a one-on-one basis and uses a reserve requirement. Other countries where the dollar-currencies are used include Cayman Island (CI$), Colombia (Colombian Peso Col$), Dominican Republic, Jamaica, Mexico, Nicaragua, and Trinidad and Tobago.
The Non-Dollar Currencies
Aruba florin is the currency used in Aruba and was introduced in 1986 to replace the Netherlands Antillean guilder. The currency is subdivided into 100 cents with a standard street value of 1.75 US$. Aruba Florin is abbreviated with the f sign with the coins in different denominations including 5,10,25, and 50 cents. The coins also come in various shapes with 50 cents as the only square-shaped coin. Bank notes also come in different notes including 5, 10,25,50, and 100. Colon is a currency used in Costa Rica alongside the US dollars. The currency is abbreviated as “C” crossed by two diagonal strokes. The currency is not bound to controlled devaluation by the Central Bank of Costa Rica. Krone is the official currency for Denmark, Greenland, and the Faroe Islands. The currency is abbreviated as “kr” or “DKK” and is sometimes referred to as Danish Crown. Krone is pegged to euro through the EMR II. The krone coins are designed in such a way that they are easily distinguished from each other. Other non-dollar currencies used in North America include Cuban Convertible Peso, Cuban peso, Guatemalan Quetzal, Haitian Gourde, Honduran Lempira, Panamanian Balboa, and Netherlands Antillean guilder.
Coins And Banknotes
The currencies used in North America come in different denominations and values. The currencies are either in coin form or banknotes. Most of the coins are in the denominations of 5,10,25, and 50 while the bank notes may come in the denomination of 5,10,25,50, and 100. Some of the coins come in different shapes with the round shape common in most countries. Some coins may be square-shaped like the 50 cents Aruba florin coin