Forex trading is legal in El Salvador and operates in a unique financial environment where both the US dollar and Bitcoin serve as legal tender. There are no foreign exchange controls in the country, allowing unrestricted currency transactions and capital flows (1). The Financial System Superintendency is the independent agency that authorizes and supervises all financial institutions in El Salvador, while the Central Reserve Bank regulates the financial system, administers international reserves, and manages the payment system (1).
El Salvador eliminated its traditional monetary policy framework when it adopted the US dollar as legal tender through the Monetary Integration Law of 2001. The Central Reserve Bank's role shifted from traditional central banking functions to supervising the financial sector and managing foreign exchange reserves (2). All transactions carried out in Salvadoran banks must be denominated in US dollars, with market conditions setting interest rates and fees (1).
"There are no foreign exchange controls in El Salvador. The legal tenders in El Salvador are the U.S. dollar and Bitcoin."
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender alongside the US dollar, creating additional opportunities for forex and cryptocurrency trading. The National Commission of Digital Assets was established in 2023 under the Digital Assets Issuance Act to provide licensing, oversight, and enforcement of digital asset regulations (2). El Salvador does not have laws or practices discriminating against foreign investors in the financial services sector, maintaining an open regulatory environment that facilitates both traditional forex trading and cryptocurrency exchanges (2).
Source:
https://www.trade.gov/country-commercial-guides/el-salvador-trade-financing
https://www.state.gov/reports/2025-investment-climate-statements/el-salvador
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.