The history of banknotes in Micronesia reflects the political and economic evolution of this Pacific island nation. Since independence in 1986, Micronesia has undergone significant changes in its monetary system, moving from using foreign currency to issuing its own banknotes.
Current banknotes in circulation
Micronesia currently uses the U.S. dollar as its official currency. The banknotes in circulation are the same as those used in the United States, including denominations of $1, $5, $10, $20, $50 and $100. This decision to adopt the U.S. dollar was made to facilitate international trade and maintain the country's economic stability.
Old banknotes and relevant facts
Prior to the adoption of the U.S. dollar, Micronesia used various foreign currencies throughout its history. During the period of U.S. trusteeship (1947-1986), U.S. dollars and, in some areas, Japanese yen were used. An interesting fact is that, during World War II, Japan issued special banknotes for use in Micronesia, known as "invasion money", which today are highly valued collector's items by note enthusiasts.
