Dollarization

Dollarization is a process when a particular country officially declares that its currency will be the US dollar. This allows the market of the foreign country to be more stable by using a reserve currency such as the US dollar. This prevents inflation within its local market because higher than normal inflation rates may be experienced if it chose to print its own currency instead.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use