Definition

To start using the US dollar as the main currency in a country instead of its own currency.

Example

The country decided to dollarize its economy to stabilize prices and attract foreign investment.

Tense Forms

Conversation

Did you hear that some countries are starting to dollarize their economies?

Yeah, I read about that! It seems like a big change for them.

I wonder if it really helps stabilize their currencies when they dollarize.

It could, but it also means losing some control over their own monetary policy.

Synonyms & Antonyms

Root Explanation

Dollarize → It is formed from "dollar" (originating from the Spanish word *dólar*, which itself comes from the German *Thaler*, a silver coin) and "-ize" (meaning to make or to convert into). The word "dollarize" means to convert something into dollars or to adopt the dollar as a currency.

Memory Tip

Think of converting something into dollars, as 'dollar' refers to the currency and '-ize' means to make or change.

Visually Confused Words