What Does Dollarization Mean?

  1. Dollarisation is the term used when the US dollar is used in addition to or in place of another country's local currency. This is an example of a currency alternative. When a country's currency is usually exchanged due to hyperinflation or instability, it loses its usefulness.

    • The dollar is when a country begins to recognize the US dollar as its currency or currency in its place or in its place.
    • Dollarization usually occurs when the local currency becomes unstable and loses its use as a means of exchanging market transactions.
    • Dollarization can have benefits and costs. This usually leads to greater financial and economic stability, but monetary policy inevitably leads to a loss of economic autonomy.

Meanings of Dollarization

  1. The process of aligning a country's currency with the US dollar.

Sentences of Dollarization

  1. The official rates of dollarisation against the Currency Board are slightly different.