South American Countries and Their Currencies, Names & Codes

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The complete list of South American countries and their currencies

Table of Contents

  1. Introduction
  2. Meaning of Currency
  3. Overview of the South American Currency System
  4. The Role of Currency in South America’s Economy
  5. Complete List of South American Countries and Their Currencies
  6. Countries Using the US Dollar or Other Foreign Currencies
  7. Strongest and Weakest Currencies in South America
  8. Regional Currency Challenges and Economic Trends
  9. Importance of ISO Currency Codes in South America
  10. Conclusion

1. Introduction – South American Countries and Their Currencies

South America is a continent rich in natural resources, cultural heritage, and economic diversity. It comprises twelve sovereign countries, each with its own distinct currency system that reflects both historical roots and modern financial realities.

From the Brazilian Real (BRL) to the Argentine Peso (ARS) and Chilean Peso (CLP), the continent showcases a wide variety of currencies — some strong and stable, others struggling with inflation and devaluation.

This guide provides a detailed and updated list of South American countries and their currencies in 2025, including currency names, ISO codes, and explanations of their economic importance and regional use.

2. Meaning of Currency

A currency is the official medium of exchange issued by a government or monetary authority. It facilitates trade, serves as a unit of value, and represents a nation’s economic identity.

In South America, currencies play a crucial role in linking local economies to global trade networks, especially in export-driven industries like oil, coffee, agriculture, and mining. Currencies also reflect the continent’s long struggle for economic stability and independence.

3. Overview of the South American Currency System

The currency system in South America is characterized by diversity and volatility. Each country maintains its own currency, though some rely on the United States Dollar (USD) either officially or informally.

While larger economies such as Brazil, Chile, and Colombia manage strong national currencies, others like Venezuela and Argentina face recurring inflation and devaluation challenges.

Regional integration efforts, such as trade blocs like MERCOSUR (Southern Common Market), have influenced economic cooperation but have not yet led to a common currency.

4. The Role of Currency in South America’s Economy

Currencies in South America are central to economic identity and development. Their roles include:

  • Facilitating trade: Enabling domestic and cross-border exchange of goods and services.
  • Maintaining stability: Managing inflation and exchange rates to preserve purchasing power.
  • Attracting investment: Stable currencies boost investor confidence and foreign direct investment.
  • Representing sovereignty: National currencies symbolize political and economic independence.

Despite economic challenges, South America continues to strengthen its financial institutions and stabilize its currencies to support sustainable growth.

5. Complete List of South American Countries and Their Currencies

CountryCurrency NameCurrency Code
ArgentinaArgentine PesoARS
BoliviaBolivianoBOB
BrazilBrazilian RealBRL
ChileChilean PesoCLP
ColombiaColombian PesoCOP
EcuadorUnited States DollarUSD
GuyanaGuyanese DollarGYD
ParaguayGuaraniPYG
PeruSolPEN
SurinameSurinamese DollarSRD
UruguayUruguayan PesoUYU
VenezuelaVenezuelan BolívarVES

6. Countries Using the US Dollar or Other Foreign Currencies

Some South American countries have adopted the United States Dollar (USD) as their official or parallel currency to maintain economic stability.

Countries officially using the USD:

  • Ecuador (official currency since 2000)

Countries that accept the USD widely:

  • Peru, Venezuela, and Uruguay use the dollar alongside their national currencies due to high inflation or strong tourism industries.

This dollarization trend reflects the region’s reliance on stable foreign currencies for trade and financial transactions.

7. Strongest and Weakest Currencies in South America

Strongest Currencies in South America (as of 2025):

  1. Brazilian Real (BRL) – Supported by Latin America’s largest economy.
  2. Chilean Peso (CLP) – Backed by stable governance and robust exports like copper.
  3. Uruguayan Peso (UYU) – Maintains stability through sound fiscal management.
  4. Peruvian Sol (PEN) – Strong due to steady growth and low inflation.
  5. Colombian Peso (COP) – Relatively stable and widely traded regionally.

Weakest Currencies in South America:

  1. Venezuelan Bolívar (VES) – Severely affected by hyperinflation.
  2. Argentine Peso (ARS) – Struggles with devaluation and inflation.
  3. Surinamese Dollar (SRD) – Declines from recurring economic instability.
  4. Paraguayan Guarani (PYG) – Limited external value despite domestic utility.
  5. Boliviano (BOB) – Relatively weak but stable within local markets.

Currency strength across South America depends largely on political stability, inflation control, and export performance.

8. Regional Currency Challenges and Economic Trends

South America faces several monetary challenges and emerging trends in 2025:

  • Inflation and Devaluation: Persistent inflation affects countries like Argentina and Venezuela, reducing confidence in national currencies.
  • Dollarization: Increasing reliance on the US Dollar reflects the region’s search for financial stability.
  • Digital Transformation: Several countries, including Brazil and Chile, are exploring central bank digital currencies (CBDCs) to modernize payment systems.
  • Regional Trade Agreements: MERCOSUR and UNASUR promote economic cooperation, which could pave the way for future currency coordination.
  • Remittance Flows: Many South American families rely on remittances from abroad, often sent in USD, impacting currency reserves and exchange rates.

Despite these challenges, South America remains a region of economic potential, with reforms aimed at improving currency management and fiscal discipline.

9. Importance of ISO Currency Codes in South America

Each South American currency is assigned a three-letter ISO 4217 code, which helps standardize international trade and financial transactions.

Examples of Common ISO Codes:

  • BRL – Brazilian Real
  • ARS – Argentine Peso
  • CLP – Chilean Peso
  • COP – Colombian Peso
  • PEN – Peruvian Sol
  • USD – United States Dollar (used in Ecuador)
  • VES – Venezuelan Bolívar
  • UYU – Uruguayan Peso

These codes are vital for global trade, banking, and investment, ensuring smooth and transparent transactions between South America and the rest of the world.

10. Conclusion – South American Countries and Their Currencies

South America’s currencies tell the story of a continent balancing economic ambition and financial reform. While nations like Brazil, Chile, and Uruguay showcase monetary stability and modern policy frameworks, others continue to battle inflation and currency depreciation.

The US Dollar’s influence across the region highlights the need for stability and international trust, especially in economies vulnerable to volatility. Yet, the ongoing reforms and digital innovations signal a promising future for monetary strength in the region.

Understanding the currencies of South America provides essential insight into its trade relationships, economic structures, and financial diversity — vital for students, investors, travelers, and economists alike.

READ ALSO: List of South American Countries and their Capitals – [Full List]

Frequently Asked Questions – South American Countries and Their Currencies

1. How many countries are in South America?
There are 12 recognized sovereign countries in South America.

2. Which country in South America uses the US Dollar?
Ecuador officially uses the United States Dollar (USD) as its national currency.

3. What is the strongest currency in South America?
The Brazilian Real (BRL) and Chilean Peso (CLP) are among the strongest currencies in South America in 2025.

4. Which is the weakest currency in South America?
The Venezuelan Bolívar (VES) remains one of the weakest due to long-term hyperinflation.

5. What currency does Argentina use?
Argentina uses the Argentine Peso (ARS).

6. What currency does Brazil use?
Brazil uses the Brazilian Real (BRL).

7. What is the currency of Chile?
Chile uses the Chilean Peso (CLP).

8. Which countries use “Peso” as their currency?
Argentina, Chile, Colombia, Uruguay, and the Dominican Republic (in the Caribbean) all use the “Peso.”

9. Why do some South American countries use the US Dollar?
Countries like Ecuador adopted the USD to control inflation and attract foreign investment.

10. What is the currency of Venezuela?
Venezuela uses the Venezuelan Bolívar (VES), though the US Dollar is also widely used in practice.

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