Basic Data:
Country ISO Code: FM
Official Language: English
Language ISO Code: en
Current Official Currency: United States Dollar
Current Currency ISO Code: USD
Complete Financial History of the Federated States of Micronesia:
Official Currency: United States Dollar (USD)
Currency ISO Code: USD
Designs / Symbols: The US dollar features portraits of former US presidents and founding fathers on banknotes, and national symbols such as the bald eagle on coins. The currency symbol is "$".
Singular Name: dollar
Plural Name: dollars
Monetary Subdivision: 1 dollar = 100 cents
Fraction Name Singular: cent
Fraction Name Plural: cents
Initial Production Date: Late 18th century; adopted as official currency in the Federated States of Micronesia upon independence in 1986
End Production Date: still in circulation
Initial Circulation Date in FSM: 1986
End Circulation Date: still in circulation
Mint: United States Mint (various locations)
Issuing Bank: United States Department of the Treasury
Coin Denominations Currently Minted: 1, 5, 10, 25, 50 cents; 1 dollar coins (various standard and commemorative issues)
Banknote Denominations Currently Issued: 1, 2, 5, 10, 20, 50, 100 dollars
Historical and Economic Context:
The Federated States of Micronesia (FSM) gained independence in 1986 under a Compact of Free Association with the United States.
Prior to independence, FSM was part of the Trust Territory of the Pacific Islands administered by the US.
The US dollar was adopted as the official currency to maintain economic stability and facilitate trade with the US and other countries.
FSM’s economy relies heavily on US aid, fishing, and agriculture, with limited monetary policy autonomy.
The use of the US dollar helps stabilize the economy but limits FSM’s ability to control its own monetary policy.
Mints / Production Locations:
Coins and banknotes are produced by the United States Mint and Bureau of Engraving and Printing.
Designs / Symbols on Coins and Banknotes:
US currency features historical American figures, national symbols, and landmarks.
Current Circulation Status:
The US dollar is the official and sole legal tender currency circulating in FSM.
Issuing Authority:
United States Department of the Treasury issues and regulates the currency.
Relevant Monetary Legislation:
The Compact of Free Association between FSM and the US governs monetary arrangements.
Persons Honored on Banknotes and Coins:
US presidents and founding fathers such as George Washington, Abraham Lincoln, and Alexander Hamilton appear on the currency used in FSM.
Summary of Coins and Banknotes Currently in Circulation in FSM:
Type | Denominations in Circulation |
---|---|
Coins | 1, 5, 10, 25, 50 cents; 1 dollar coins |
Banknotes | 1, 2, 5, 10, 20, 50, 100 dollars |
This report provides a comprehensive overview of the Federated States of Micronesia’s financial history, emphasizing its use of the US dollar as official currency since independence, with no separate national currency issued.