Definition

The process where a country uses the US dollar as its main currency instead of its own.

Example

Dollarization can help stabilize a country's economy by reducing inflation.

Conversation

Have you heard about dollarization in some countries?

Yeah, it's interesting how they just switch to using US dollars.

I wonder how that affects their economy in the long run.

It can be tricky, but it often helps stabilize things.

Synonyms & Antonyms

Root Explanation

Dollarization is formed from "dollar" (originating from the Spanish word 'dólar', which itself comes from the German 'Thaler', a silver coin) and "-ization" (meaning the process of making or becoming). The term refers to the process of adopting the dollar as a country's official currency.

Memory Tip

Think of the word 'dollar' as the currency being adopted, and '-ization' as the process of making it official. This helps you remember that dollarization means the process of a country adopting the dollar as its currency.

Visually Confused Words