There's no doubt that the U.S. dollar has immense power. Its value is determined by the strength of the American economy, which is one of the reasons why it's the world's dominant currency. Not only is it the world's most commonly used currency, but it's also the world's reserve currency, meaning it's held in large quantities by central banks around the globe. Commonly known as the greenback, it's also one of the most commonly traded currencies on the foreign exchange market.

While it's strength as a powerhouse may not be a shock, it may come as a surprise that the dollar is also the official currency of a host of U.S. territories and other sovereign nations around the world. It's also the quasi-official currency of many other nations that commonly accept U.S. dollars in addition to their own local currency. If you're an avid traveler, someone who does business overseas, or an ex-pat, you'll want to keep reading. We've compiled a comprehensive list of places around the world that use the greenback as an official currency.

Key Takeaways Five U.S. territories and seven sovereign nations use the U.S. dollar as their official currency.

The British Virgin Islands and the British Turks and Caicos Islands also use the U.S. dollar as their official currency of exchange.

The U.S. dollar is also used in conjunction with local currencies in a number of different popular destinations for American tourists.

Official Use of the U.S. Dollar

The world's first U.S. dollar was printed in 1914 after the Federal Reserve Bank was created. It became the world's reserve currency after the negotiation of the Bretton Woods Agreement in 1944 when it was decided that the world's central banks would use fixed exchange rates between the U.S. dollar and their own currencies.

According to the Federal Reserve Bank of New York, more than half of the U.S. dollars printed are used outside the United States—as much as 65%—to the tune of $580 billion, with the majority being exchanged in countries in Latin America and the former Soviet Union.

More than 65 countries peg their currencies to the U.S. dollar while five U.S. territories and seven sovereign countries use it as their official currency of exchange. The table below provides an overview of the U.S. territories and independent sovereign nations that use the U.S. dollar as their official medium of exchange.