What Kind of Currency Do They Use in Puerto Rico?
Puerto Rico, a beautiful island in the Caribbean, is a commonwealth of the United States. This unique status has led to some confusion regarding the currency used in Puerto Rico. While it is an integral part of the US, Puerto Rico has its own distinct identity, which raises questions about the type of currency used on the island. In this article, we will explore the currency system in Puerto Rico, its history, and answer some frequently asked questions to provide a comprehensive understanding.
The Currency System in Puerto Rico:
The official currency used in Puerto Rico is the United States dollar ($). As a territory of the United States, Puerto Rico follows the same currency system as the mainland. US dollars are widely accepted as legal tender, and you will find that most businesses, hotels, restaurants, and shops operate in US currency. This makes it convenient for American tourists, as there is no need for currency exchange.
Historical Background:
The use of the US dollar in Puerto Rico can be traced back to the Spanish-American War in 1898 when Puerto Rico became a territory of the United States. Prior to this, the island used the Puerto Rican peso as its official currency. However, with the transfer of sovereignty, the US dollar gradually replaced the peso, and by 1917, the US dollar became the sole currency used in Puerto Rico.
Frequently Asked Questions:
1. Can I use my credit card in Puerto Rico?
Yes, credit cards are widely accepted in Puerto Rico. Most businesses, hotels, and restaurants accept major credit cards such as Visa, Mastercard, and American Express. However, it is recommended to carry some cash for smaller establishments or places that may not accept cards.
2. Should I bring US dollars or exchange for local currency?
You do not need to exchange your US dollars for local currency in Puerto Rico. US dollars are the official currency and are widely accepted everywhere on the island. It is advisable to have some cash on hand for small purchases or in case of any emergencies.
3. Are there ATMs available in Puerto Rico?
Yes, you will find ATMs throughout Puerto Rico, especially in urban areas and tourist hotspots. Most ATMs accept major debit and credit cards, allowing you to withdraw US dollars. However, it is always a good idea to inform your bank of your travel plans to ensure a smooth transaction.
4. Can I use traveler’s checks in Puerto Rico?
While traveler’s checks were popular in the past, their use has declined significantly in recent years. Many businesses no longer accept traveler’s checks due to the prevalence of credit cards and the ease of electronic transactions. It is advisable to carry a mix of cash and credit cards for your convenience.
5. Can I exchange foreign currency in Puerto Rico?
As the official currency is the US dollar, exchanging foreign currency in Puerto Rico can be challenging. It is recommended to convert your currency to US dollars before arriving in Puerto Rico.
6. What about sales tax in Puerto Rico?
Sales tax, known as “Impuesto sobre Ventas y Uso” (IVU), is applicable in Puerto Rico. The current sales tax rate is 11.5%, which may vary based on the municipality. It is important to consider this additional cost when making purchases.
7. Can I use Puerto Rican coins in the US?
Puerto Rican coins are not accepted as legal tender in the United States. However, you can exchange them for US currency at some local banks in Puerto Rico or upon your return to the mainland.
In conclusion, Puerto Rico uses the United States dollar as its official currency. The island’s close association with the United States has resulted in the widespread acceptance of US dollars, making it convenient for travelers. Whether you are exploring the vibrant streets of San Juan or relaxing on the pristine beaches, you can rest assured that your US dollars will be accepted throughout the island.