dollarization
Noun
Meaning
dollarization (uncountable)
(economics) The process of a country, officially, or its residents, unofficially, adopting the US dollar or other foreign currency in parallel to or instead of the domestic currency.
Examples
Dollarization notwithstanding, the large issuance of the Somali shilling has caused inflation.
However, the coup de grâce for Mahuad's administration was Mahuad's decision to make the local currency, the sucre (named after Antonio José de Sucre ), obsolete and replace it with the U.S. dollar (a policy called dollarization ).
I think we can expect the interest rate to increase to 13.5-14% by mid next year to further dissuade people from dollarization.
Such a move "would lead to a dollarization trend, as it would be meaningless to hold lira for locals," according to Erkin Isik, a strategist at Turk Ekonomi Bankasi AS in Istanbul.
"If Argentina were to return to a dollarization, they should set the currency at a rate that's realistic.
If Jamaica would dollarize its economy, it would benefit from decreased borrowing costs and inflation and if the dollarization took place over a two-year period it would entail no start-up costs.