dollarisation
Foreign money takeover
Dollarisation (also spelled dollarization) is the adoption of the US dollar as official or de facto currency by a country other than the United States, typically to stabilize an economy plagued by hyperinflation or currency collapse.
Countries like Ecuador and El Salvador have undergone full dollarisation, replacing their national currencies entirely.
The term can extend to adoption of other stable foreign currencies, though the dollar remains the most common choice.
Zimbabwe's dollarisation helped curb runaway inflation.
Medium of exchange
- adoptionLegal family formation
- peggingFastening with pins
- exchangeMutual giving and receiving
- USDAmerican monetary unit
convertibility · denomination · tender · circulation · remittance · reserves · liquidity · banknotes
Sustained price level increase
- hyperinflationExtreme rapid price escalation
- stabilityResistance to displacement
- confidenceSelf-assurance or trust
- investmentDeploying capital for returns
credibility · trade · integration · globalisation · capital flows · price stability · purchasing power · competitiveness
Global economic assistance organization
- reformImprove by correcting faults
- stabilisationMaking something steady
- central bankNational currency management institution
- monetary policyCentral bank economic controls
sovereignty · autonomy · regime · transition · liberalisation · devaluation · adjustment · intervention
Country at zero latitude
- PanamaIsthmus nation with waterway
- El SalvadorTiny Pacific-coast republic
- ZimbabweSouthern African republic
- ArgentinaSouthern cone republic
Venezuela · Cambodia · Timor-Leste · Liberia · Kosovo · Montenegro · Latin America · Caribbean
currency
Medium of exchange
USD · convertibility · denomination · tender · circulation · remittance · reserves · liquidity · banknotes · cash
inflation
Sustained price level increase
- hyperinflationExtreme rapid price escalation
- stabilityResistance to displacement
- confidenceSelf-assurance or trust
investment · credibility · trade · integration · globalisation · capital flows · price stability · purchasing power · competitiveness · transaction costs
IMF
Global economic assistance organization
- reformImprove by correcting faults
- stabilisationMaking something steady
- central bankNational currency management institution
monetary policy · sovereignty · autonomy · regime · transition · liberalisation · devaluation · adjustment · intervention · mandate
Ecuador
Country at zero latitude
- PanamaIsthmus nation with waterway
- El SalvadorTiny Pacific-coast republic
- ZimbabweSouthern African republic
Argentina · Venezuela · Cambodia · Timor-Leste · Liberia · Kosovo · Montenegro · Latin America · Caribbean · Africa
dollarisationmonetary sovereignty
Control over own currency
dedollarization · de-dollarization · national currency · local currency
dollarisationeconomic nationalism
Favoring domestic over foreign commerce