CURRENT AFFAIRS

Detailed explanation-1: -The History of El Salvador’s Currency From 1892 until 2001, the currency of El Salvador was the colón. The US dollar replaced the colón in 2001.

Detailed explanation-2: -On 1 January 2001, the government in El Salvador gave up control of its monetary policy . It abandoned the fixed exchange rate and “dollarized” the economy. Thus, U.S. currency can be used in El Salvador as legal tender. El Salvadoran monetary policy is now effectively in the hands of the U.S. Federal Reserve Bank.

Detailed explanation-3: -The colón, the currency of El Salvador since 1892, was replaced by the United States dollar in 2001.