DOLLARIZE Meaning and
Definition
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The term "dollarize" refers to the process of adopting a foreign currency, particularly the United States dollar, as the official legal tender in a country. This occurs when a country decides to give up its national currency and replaces it with the dollar for all transactions, including pricing, salaries, loans, and savings. This decision is often motivated by a desire to stabilize the economy, attract foreign investments, or alleviate hyperinflation.
Dollarization involves several steps, including removing the old currency from circulation and converting all financial transactions, debts, and existing savings into the new currency. It also requires ensuring that the economy has a sufficient supply of American dollars to meet the needs of the population. In some cases, a country may fully dollarize, completely replacing its national currency with the US dollar, while in others, partial dollarization may occur, meaning that the national currency continues to circulate alongside the dollar but has limited acceptance.
Dollarization can have both benefits and drawbacks. On the positive side, it can promote economic stability by eliminating exchange rate fluctuations and reducing inflationary pressures. Dollarizing countries may also gain credibility in the international market, attracting foreign investment and trade. However, dollarization may also mean relinquishing control over monetary policy, as decisions regarding interest rates and money supply are dictated by the United States Federal Reserve. Moreover, if a country is too dependent on dollar-denominated transactions, it may be vulnerable to economic shocks in the United States.
Common Misspellings for DOLLARIZE
Etymology of DOLLARIZE
The word "dollarize" is derived from the noun "dollar", which originated from the Germanic word "taler" or "thaler". The German taler referred to a silver coin used as legal tender in Europe, particularly during the 16th century. It was widely used in various regions, such as Bohemia, Hungary, and the Holy Roman Empire. The term "dollar" was first used to describe the Spanish silver coin called the "real de a ocho" or "piece of eight", which was in circulation during medieval times.
In the late 18th century, the United States adopted its currency and named it the "dollar" after the Spanish coin, which was commonly used in early American trade. As such, the term "dollar" became synonymous with the US currency.
Conjugate verb Dollarize
CONDITIONAL
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would dollarize
you
would dollarize
he/she/it
would dollarize
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would dollarize
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would dollarize
CONDITIONAL CONTINUOUS
I
would be dollarizing
you
would be dollarizing
he/she/it
would be dollarizing
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would be dollarizing
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would be dollarizing
CONDITIONAL PERFECT
I
would have dollarize
you
would have dollarize
he/she/it
would have dollarize
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would have dollarize
they
would have dollarize
CONDITIONAL PERFECT CONTINUOUS
I
would have been dollarizing
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would have been dollarizing
he/she/it
would have been dollarizing
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would have been dollarizing
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would have been dollarizing
FUTURE
I
will dollarize
you
will dollarize
he/she/it
will dollarize
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will dollarize
they
will dollarize
FUTURE CONTINUOUS
I
will be dollarizing
you
will be dollarizing
he/she/it
will be dollarizing
we
will be dollarizing
they
will be dollarizing
FUTURE PERFECT
I
will have dollarized
you
will have dollarized
he/she/it
will have dollarized
we
will have dollarized
they
will have dollarized
FUTURE PERFECT CONTINUOUS
I
will have been dollarizing
you
will have been dollarizing
he/she/it
will have been dollarizing
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will have been dollarizing
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will have been dollarizing
IMPERATIVE
you
dollarize
we
let´s dollarize
to dollarize
PAST
I
dollarized
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dollarized
he/she/it
dollarized
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dollarized
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dollarized
PAST CONTINUOUS
I
was dollarizing
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were dollarizing
he/she/it
was dollarizing
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were dollarizing
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were dollarizing
PAST PARTICIPLE
dollarized
PAST PERFECT
I
had dollarized
you
had dollarized
he/she/it
had dollarized
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had dollarized
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had dollarized
PAST PERFECT CONTINUOUS
I
had been dollarizing
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had been dollarizing
he/she/it
had been dollarizing
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had been dollarizing
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had been dollarizing
PRESENT
I
dollarize
you
dollarize
he/she/it
dollarizes
we
dollarize
they
dollarize
PRESENT CONTINUOUS
I
am dollarizing
you
are dollarizing
he/she/it
is dollarizing
we
are dollarizing
they
are dollarizing
PRESENT PARTICIPLE
dollarizing
PRESENT PERFECT
I
have dollarized
you
have dollarized
he/she/it
has dollarized
we
have dollarized
they
have dollarized
PRESENT PERFECT CONTINUOUS
I
have been dollarizing
you
have been dollarizing
he/she/it
has been dollarizing
we
have been dollarizing
they
have been dollarizing
