Dollarized
There are national economies that attempt to be more secure internationally by fixing the local currency to another currency. These fixed exchange rates can reduce the risk of the local currency fluctuating to the point of dire consequence. For example, last year Belarus announced it would move from a Russian ruble to a US dollar fixed exchange.
However, I recently discovered that some nations take this strategy to another level and completely transfer over the entire local currency; the local nation produces no currency of its own and purchases the currency of another nation for use within the local economy. This process is lovingly referred to as dollarization (a term surely not coined by Shakespeare). dollarization.org has a list of dollarized economies. Not all are pegged against the US dollar, however it is the most frequent currency used.
According to the CIA World Factbook - other than US territories - the following nation-states are dollarized economies employing the US dollar:
However, I recently discovered that some nations take this strategy to another level and completely transfer over the entire local currency; the local nation produces no currency of its own and purchases the currency of another nation for use within the local economy. This process is lovingly referred to as dollarization (a term surely not coined by Shakespeare). dollarization.org has a list of dollarized economies. Not all are pegged against the US dollar, however it is the most frequent currency used.
According to the CIA World Factbook - other than US territories - the following nation-states are dollarized economies employing the US dollar:
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