Central America is a popular travel destination for Australians, offering diverse landscapes, ancient ruins, and vibrant cultures. However, with each country using its own currency—or in some cases, the U.S. dollar—it’s important to prepare financially before you go.
This article outlines the currencies used throughout Central America, how to exchange Australian dollars effectively, and what to expect when spending money across the region. With careful planning, Australians can enjoy a smooth and affordable travel experience from Costa Rica to Panama and beyond.
Currencies in Central America: Country by Country
Travelling in Central America involves using a mix of local currencies and, in some cases, the U.S. dollar. Here’s an overview of what to expect:
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Costa Rica (Costa Rican Colón – CRC): The official currency is the colón, though U.S. dollars are also widely accepted in tourist areas. It’s recommended to carry some colones for local purchases.
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Guatemala (Guatemalan Quetzal – GTQ): Cash is the primary payment method in rural areas. U.S. dollars may be accepted in some hotels and tour agencies.
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Honduras (Honduran Lempira – HNL): Lempiras are used for most transactions. U.S. dollars are accepted in select locations, but not universally.
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El Salvador (United States Dollar – USD): El Salvador uses the U.S. dollar as its official currency, simplifying travel for those carrying foreign cash.
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Nicaragua (Nicaraguan Córdoba – NIO): Local currency is commonly used, though U.S. dollars may be accepted in tourism hotspots.
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Panama (United States Dollar – USD and Panamanian Balboa – PAB): Both currencies are used interchangeably. Coins are denominated in balboas, while U.S. dollars are used for all paper money.
Understanding this variation is key when crossing borders, as you may need to exchange currency multiple times throughout your trip.
Exchanging Currency and Accessing Money
Australian travellers may find it difficult to exchange AUD directly in Central America. It’s often easier to bring a supply of U.S. dollars, which are widely exchanged and accepted in most countries. Alternatively, international debit and travel cards can be used to withdraw local currency from ATMs in major cities and tourist areas.
When using ATMs, be aware of international transaction fees and withdrawal limits. Some machines may only accept certain card networks (e.g., Visa or Mastercard), so it’s helpful to carry more than one card. Avoid using ATMs at night or in isolated areas, and choose machines located within banks or reputable businesses.
While credit cards are accepted in many hotels and restaurants, especially in urban areas, cash remains essential for markets, local buses, and smaller shops.
Budgeting and Travel Costs
The cost of travel in Central America varies by country, with Costa Rica and Panama generally more expensive than Guatemala, Nicaragua, or Honduras. To manage your travel budget effectively, consider accommodation, transport, entry fees, and daily expenses when planning your trip.
Keep in mind that tipping is customary in many countries, often 10% in restaurants. For small purchases and local services, it’s advisable to carry small denominations in local currency. When budgeting, remember that even countries using the U.S. dollar may have different price levels, and change may sometimes be given in local coins.
Planning ahead and tracking your spending with a currency conversion app can help you stay within your budget and reduce unexpected costs.
Tips for Managing Currency Across the Region
When travelling through multiple countries in Central America, these tips can help you manage your money efficiently:
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Bring a mix of U.S. dollars and international travel cards
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Exchange small amounts of cash at borders to avoid poor rates
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Avoid carrying large sums of cash between countries
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Keep each country’s currency separate and clearly labelled
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Download a currency conversion app for real-time exchange rates
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Notify your bank about international travel to prevent card blocks
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Use hotel safes or money belts to store backup funds securely
For more tips on currency exchange and international money management, visit the Remitly Currency Blog.
FAQ: Currency in Central America
1. Can I use Australian dollars in Central America?
No. AUD is not accepted. It’s best to bring U.S. dollars or use cards to withdraw local currency upon arrival.
2. Which Central American countries use the U.S. dollar?
El Salvador and Panama use the U.S. dollar officially. It is also accepted in parts of Costa Rica and Nicaragua.
3. Are ATMs reliable across the region?
Yes, in cities and tourist areas. However, rural access may be limited, so plan ahead with enough cash.
4. Should I exchange money before leaving Australia?
You can exchange a small amount, but better rates are often found at your destination or by using ATMs.
5. What is the best way to manage multiple currencies on one trip?
Use a multi-currency travel card, track your spending, and exchange small amounts as needed between borders.