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Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency. Image File history File links Wiki_letter_w. ...

Dollarization can occur

• unofficially, without formal legal approval
• semiofficially (or officially bimonetary systems), where foreign currency is legal tender, but plays a secondary role to domestic currency
• officially, when a country ceases to issue the domestic currency and uses only foreign currency.

The term dollarization is not only applied to usage of the United States dollar, but also generally to the use of any foreign currency as the national currency. Legal tender or forced tender is payment that cannot be refused in settlement of a debt denominated in the same currency by virtue of law. ... ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ...

Until 1999, official dollarization received practically no attention because it was considered politically impossible. Since then it gained prominence after several countries have considered and implemented it as official policy. The major advantage of dollarization is to promote greater financial stability and a lower inflation rate.

The most important officially dollarized economies as of June 2002 were Ecuador (since 2000), El Salvador (since 2001) and Panama (since 1904).

As of August 2005, the United States dollar, the Euro, the New Zealand dollar, the Turkish lira, the Russian ruble, the Swiss franc, and the Australian dollar were the only currencies used by other countries for official dollarization. ISO 4217 Code USD User(s) the United States, the British Indian Ocean Territory,[1] the British Virgin Islands, Cambodia, East Timor, Ecuador, El Salvador, the Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos Islands, and the insular areas of the United States Inflation 2. ... ISO 4217 Code EUR User(s) Andorra, Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Kosovo, Luxembourg, Monaco, Montenegro, the Netherlands, Portugal, San Marino, Slovenia, Spain, Vatican City Inflation 1. ... ISO 4217 Code NZD User(s) New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau Inflation 2. ... The Turkish lira was the currency of Turkey until 2005. ... ISO 4217 Code RUB User(s) Russia and self-proclaimed Abkhazia and South Ossetia Inflation 10. ... ISO 4217 Code CHF User(s) Switzerland, Liechtenstein, Campione dItalia Inflation 1. ... ISO 4217 Code AUD User(s) Australia, Kiribati, Nauru, Tuvalu, Christmas Island, Cocos (Keeling) Islands, and Norfolk Island Inflation 3. ...

See also: American currency union The Fraser Institutes proposed symbol/logo for the amero Currency union in the Americas is an idea based on the common European Union currency, the euro. ...

List of Officially Dollarized Economies

U.S. dollar

• British Virgin Islands
• East Timor
• Ecuador (uses its own coins)
• El Salvador
• Marshall Islands
• Federated States of Micronesia
• Palau
• Panama (uses its own coins)
• Pitcairn Islands (also uses the New Zealand dollar)
• Turks and Caicos Islands
• Belize

ISO 4217 Code NZD User(s) New Zealand, Cook Islands, Niue, Pitcairn Islands, Tokelau Inflation 2. ...

Euro

• Kosovo
• Monaco (formerly French franc; issues own Euro coins)
• Andorra (formerly French franc and Spanish peseta)
• San Marino (formerly Italian lira; issues own Euro coins)
• Vatican City (formerly Italian lira; issues its own Euro coins)
• Montenegro (formerly German mark and Yugoslav dinar)
• Gibraltar (accept both Pound sterling and Euro)
• Former French territories continue to peg their currencies to that of France. See CFA Franc, CFP Franc, Comorian Franc.

For uses of the name Kosova, see Kosova (disambiguation). ... French Franc. ... ISO 4217 Code ESP User(s) Spain, Andorra Inflation 1. ... ISO 4217 Code ITL User(s) Italy, San Marino, Vatican City, but not Campione dItalia Inflation 2. ... Anthem Oj, svijetla majska zoro Oh, the bright dawn of May Montenegro() on the European continent()  —  [] Capital (and largest city) Podgorica Official languages Serbian (Ijekavian dialect)1 Government Republic  -  President Filip Vujanović  -  Prime Minister Željko Å turanović Independence due to the dissolution of Serbia and Montenegro   -  Declared June 3, 2006   -  Recognised... ISO 4217 Code DEM User(s) Germany, Montenegro, Kosovo ERM Since 13 March 1979 Fixed rate since 31 December 1998 Replaced by €, non cash 1 January 1999 Replaced by €, cash 1 January 2002 € = 1. ... Obverse of 10 Yugoslav Dinars issued by the National Bank of Yugoslavia during 1960s Reverse of 10 Yugoslav Dinars issued by the National Bank of Yugoslavia during 1960s Yugoslav dinar was the official valute in former Yugoslavia. ... ISO 4217 Code GBP User(s) United Kingdom, Crown Dependencies Inflation 3. ... ISO 4217 Code EUR User(s) Andorra, Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Kosovo, Luxembourg, Monaco, Montenegro, the Netherlands, Portugal, San Marino, Slovenia, Spain, Vatican City Inflation 1. ... now. ... The CFP franc (in French: franc Pacifique or franc CFP ; CFP stood for Colonies françaises du Pacifique (i. ... ISO 4217 Code KMF User(s) Comoros Inflation rate 3% Source CIA World Fact Book, 2005 est. ...

Russian ruble

• Abkhazia
• South Ossetia

Even though these states are not recognized internationally, they exist de-facto. National anthem Aiaaira Official languages Abkhaz, with Russian having co-official status and widespread use by government and other institutions Political status De facto independent Capital Sukhumi Capitals coordinates President Sergei Bagapsh Prime Minister Alexander Ankvab Independence  â€“ Declared  â€“ Recognition From Georgia  23 July 1992  none Currency Russian ruble Official... National anthem Unknown Official languages Ossetian, with Russian having and widespread use by government and other institutions Political status De facto independent Capital Tskhinvali Capitals coordinates 42°14′N 43°58′E President Eduard Djabeevich Kokoity Prime Minister Yury Morozov Independence  â€“ Declared  â€“ Recognition From Georgia  1991-11-28  none...

New Zealand dollar

• Cook Islands
• Niue
• Tokelau
• Pitcairn Island (also uses U.S. dollar)

Australian dollar

• Kiribati (issues own coins)
• Nauru
• Tuvalu (prints its own notes)

Others

• Cyprus, Northern (Turkish lira)
• Liechtenstein (Swiss franc)
• Bhutan (Indian rupee, to which it is pegged)

The Turkish Republic of Northern Cyprus(TRNC) {NOTE: the name is not accepted by UN} , in Turkish Kuzey Kıbrıs Türk Cumhuriyeti, is a self-proclaimed state occupying the northern third of the island of Cyprus in the eastern Mediterranean. ...

External links

• Dollarization.org (Reference for list of dollarized economies)
• Latin Business Chronicle: Latin American Dollarization Reports & Links

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