The Salvadoran Central Reserve Bank Confirms the Circulation of $0.50 Coins and $2 Bills

By Karla Ramos  |  Jan 22nd, 2024
El Salvador Currency

Despite not being so common, the Salvadoran Central Reserve Bank (BCR) stated that $0.50 coins and $2 bills are currencies are legal tenders that can be used throughout the Salvadoran territory.

The $0.50 coin, commonly referred to as “a half dollar,” possesses a silver coloring, and it is larger than the $0.25 coin, also known as a “Cora,” as well as the $1 coin.

In April 2023, the Salvadoran Central Reserve Bank (BCR) announced the introduction of $50 and $100 bills for acceptance in local transactions. Subsequently, $0.50 coins and $2 bills have also been included in the circulation.

Previously, businesses, particularly smaller ones, refrained from accepting $50 and $100 bills. Consequently, the Salvadoran government dispatched inspectors to eliminate signs that discouraged its use. “$50 and $100 bills are not accepted here.”

SEE ALSO: El Salvador Bitcoins: A Nation’s Journey into Digital Currency

The BCR also announced that they would sanction establishments that refuse to receive these denominations.

We are distributing $50.00 and $100.00 bills to the national Financial System to ensure their availability for the entire population. Furthermore, we collaborate with the Consumer Ombudsman to promote acceptance of these bills across all establishments in the country. Salvadoran Central Reserve Bank, April 2023.

According to the BCR, the acceptance of this type of money complies with Article 3 of the Salvadoran Monetary Integration Law, which establishes that “the dollar will have an unrestricted legal tender with unlimited liberatory power for the payment of monetary obligations in the territory.”

Due to its irregularity, some people prefer to hoard these $0.50 Coins and $2 Bills when it comes into their hands instead of spending them; however, it is worth remembering that these can be used in any business in El Salvador.

SEE ALSO: Legal Currency of El Salvador. What Currency Does El Salvador Use?

El Salvador’s legal tenders, including newly introduced denominations like $0.50 Coins and $2, $50, and $100 bills, signify a dynamic shift in currency circulation. Bitcoin and the Salvadoran Peso are also legal tenders in El Salvador.