dollarisation

Definition

The process by which a country's domestic currency is replaced by or pegged to a more stable foreign currency, typically the U.S. dollar, to manage hyperinflation or economic instability.

Etymology

Derived from the English 'dollar' and the suffix '-isation', which denotes a process or state of being. It emerged in economic discourse in the 20th century to describe the informal or formal adoption of a foreign currency in nations with volatile local currencies.

In the news

The article mentions dollarisation as a key factor in Zimbabwe's economic landscape, highlighting it as a significant strategy used alongside reforms to manage the country's currency and debt challenges.

Zimbabwe’s economy turning around faster than expected – Citi

263Chat

Related words