1. the process or policy of adopting the U.S. dollar as the official currency of a country or region
Usage: economics; international finance
2. the increasing use of U.S. dollars in place of a country's own currency in everyday transactions and savings
Usage: economics

Examples

• Ecuador's dollarization in 2000 replaced the sucre with the U.S. dollar as legal tender.
• Many economists debate whether dollarization helps or hurts developing economies.
• The country considered dollarization to stabilize its currency and reduce inflation.
• Informal dollarization occurs when citizens prefer to hold and use dollars rather than their own currency.
• Panama has used dollarization alongside its own currency for decades.