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Investments glossary

Dollarization


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Quotes of the day:

Early morning hath gold in its mouth.

— Benjamin Franklin

Dollarization is the term for when the U.S. dollar is used in addition to or instead of the domestic currency of another country. It is an example of currency substitution. Dollarization usually happens when a country’s own currency loses its usefulness as a medium of exchange, due to hyperinflation or instability.

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