Which is an example of a country that makes use of another nation’s currency? france germany panama mexico

The correct answer is Panama.

The national currency in Panama is the U.S. dollar.

The dollar became the official currency in 1904 but it has been in circulation since 1849. There is another semi-official currency in Panama, the original one called Balboa. However, as Balboa exchange to U.S. dollar is one to one, the dollar is the legal tender in the country.

There are no Balboa bills in circulation, some coins only.

Panama is considered a dollarized country and so it can benefit from the stability of the dollar. Other countries using the dollar in Latin America are: Argentina, Ecuador,  El Salvador and Guatemala.

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