Yes, that is correct! In addition to being the legal tender across the five inhabited U.S. territories (Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, and the Northern Mariana Islands), the U.S. dollar is officially adopted or widely used as a primary legal tender in several foreign countries, independent nations, and special international municipalities (such as Ecuador, El Salvador, Panama, Zimbabwe, Timor-Leste, the Federated States of Micronesia, Palau, the Marshall Islands, the British Virgin Islands, the Turks and Caicos Islands, and the Caribbean Netherlands municipalities of Bonaire, Sint Eustatius, and Saba).
This widespread adoption—often referred to as official dollarization—happens for various reasons, including seeking economic stability after financial crises, maintaining close institutional ties with the United States, or choosing not to issue a separate national currency upon gaining independence.
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