Why does East Timor use the US dollar?

East Timor uses the US dollar as its official currency primarily to promote economic stability and facilitate trade. After gaining independence in 2002, the country adopted the dollar to provide a stable monetary environment, given its limited economic resources and infrastructure. This choice helps to minimize inflation and encourages foreign investment, as the dollar is a widely accepted and stable currency. Additionally, using the US dollar simplifies transactions and financial planning for both citizens and businesses.