Central America is a diverse region in terms of culture and landscapes, and its monetary systems are just as varied. Understanding how money works in each country is just as important as having your travel documents in order.

That’s why we’ve prepared a practical guide to help you understand which currency is used in each Central American country, its equivalence to the US dollar, and some useful tips for exchanging money.

Take note and plan your budget better if you're heading to any of these countries.

Central American Currencies: Values and Tips for Exchanging Money

Currencies of Central America

Knowing which currency is used in the country where you plan to travel or work is essential for several reasons. One of the main reasons is that it allows you to plan a more accurate budget.

The first thing to clarify is that not all world currencies are equally stable. For this reason, some Central American countries use the US dollar alongside or instead of their local currencies.

That said, let’s look at the currencies used in Central America:

Belize Dollar (Belize)

The official currency of Belize is the Belize dollar, which has been in circulation since 1978. Its value is pegged to the US dollar at a fixed exchange rate: 2 BZD equals 1 USD. For this reason, the American dollar is accepted in many parts of the country. However, if you pay with USD and need change, you’ll receive Belize dollars.

Costa Rican Colón (Costa Rica)

Since 1896, Costa Rica's official currency has been the colón, named after Christopher Columbus. Most daily transactions are made in colones, especially in markets and public transportation. However, in tourist areas and large businesses, US dollars are commonly accepted.

The Costa Rican exchange rate may vary according to the bank or exchange houses.

Nicaraguan Córdoba (Nicaragua)

In Nicaragua, banknotes range from 10 to 1,000 córdobas, along with coins up to 10 córdobas. US dollars are widely accepted in hotels and major stores. However, for daily expenses, it’s better to use córdobas, since many prices adjust based on the daily exchange rate.

Honduran Lempira (Honduras)

The official currency in Honduras is named after a local indigenous leader who resisted the Spanish conquest. Most local purchases are made in lempiras, but the US dollar is also accepted, especially in tourist areas.

US Dollar (El Salvador)

The US dollar has been the official currency of El Salvador since 2001, replacing the Salvadoran colón. This simplifies transactions for tourists and foreign workers, since there's no need to exchange currencies if you already have dollars. Prices are listed in USD, and American bills and coins are used throughout the country, including ATMs.

Guatemalan Quetzal (Guatemala)

The quetzal is Guatemala's official currency, named after the country's national bird. Banknotes range from 1 to 200 quetzals, and coins go from 5 centavos to 1 quetzal. US dollars are accepted in some tourist locations, but it’s best to use quetzals to avoid poor exchange rates or extra fees. The exchange rate in Guatemala is known for its flexibility.

Balboa (Panama)

Panama has a unique monetary system with two official currencies: the balboa and the US dollar. However, the balboa exists only in coin form, while all purchases, salaries, and savings are made in dollars. The balboa is pegged 1:1 to the dollar, so there's no variation in the exchange rate.

As you can see, the list is shorter than that of Latin American currencies, and most countries also use the American dollar.

Here is a summary of each Central American country's official currency and ISO code:

Exchange Rates of Central American Currencies

The exchange rates of Central American currencies against the US dollar are key if you plan to travel, work, or shop in the region. As of now, here is the exchange rate for each country:

Exchange rates as of 06/02/2025. Check official sources for updates.

Tips for Exchanging Currency When Traveling

Before traveling, it’s important to plan how you will manage your money, including currency exchange. Here are a few tips:

Exchange before your trip

Some Central American currencies are hard to find outside the region. So it may be more practical to exchange at least a small amount before you arrive, enough for initial expenses like transportation and food.

Don’t exchange all your money at the airport

Airport exchange offices are one of the first options upon arrival, but exchanging large amounts there can be expensive due to unfavorable rates. Exchange just enough for initial expenses and look for better rates in the city.

This also applies if you carry less common currencies, such as Asian currencies or African currencies. Since in many cases they are not accepted in Central American airports.

Carry both cash and cards

Cash is essential in local markets, public transport, or rural areas. It's wise to carry some small bills in local currency, as many vendors may not have change or accept cards.

For more touristy areas, hotels, supermarkets, and international chains, use globally accepted cards like Visa or Mastercard.

That means you can use your DolarApp DolarCard. Just make sure to load it with digital dollars (USDc) and use it wherever it’s accepted. You can top up your balance directly from your linked local account. Enjoy fair exchange rates, processed instantly and free of charge.

FAQ: Central American Currencies

Which is the most valuable currency in Central America?

The Guatemalan quetzal is currently the most valuable currency in Central America, as fewer quetzals are needed per US dollar. It enjoys unique stability and is one of the few that has undergone currency redenomination.

Can I use US dollars in Central America?

Yes, in most Central American countries you can use US dollars, especially in tourist areas. However, having local currency is recommended to avoid bad exchange rates or restrictions.

How can I avoid scams when exchanging money in Central America?

To avoid currency exchange scams in Central America or anywhere else, stick to reliable options such as exchange offices or banks. If using an ATM, count your money immediately and avoid exchanging money on the street.