dollarized

Uses American money

Dollarized describes an economy that has adopted the U.S. dollar as its official or primary currency, replacing or supplementing the local currency: Ecuador has been fully dollarized since 2000.

Countries dollarize to combat hyperinflation or stabilize their economies.

The term can also apply to informal adoption, where dollars circulate widely even without official status.

adoption

currency

Medium of exchange

official · legal tender · anchor · replacement · transition · surrender · sovereignty · central bank · monetary policy · unilateral

stability

inflation

Sustained price level increase

confidence · predictability · credibility · anchor · price stability · low interest · foreign investment · capital flight · devaluation · crisis

exchange

forex

Currency trading market

liquidity · arbitrage · appreciation · depreciation · parity · remittances · transaction costs · cross-border · black market · elimination

Categories
Opposites
currency sovereignty

dollarizednational currency

Official money of a state

local currency · monetary sovereignty

currency type

dollarizedgold standard

Measure of ultimate quality

barter economy

Family

dollarize, dollarization

Familiarity
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Profile
Timeless · Abstract · Rated G