Why do East Timor, Ecuador, El Salvador and Zimbabwe use the US dollar as their national currency?
#114644. Asked by author. (May 12 10 11:30 AM)
"Dollarization occurs when the inhabitants of a country use foreign currency in parallel to or instead of the domestic currency... The major advantage of dollarization is promoting fiscal discipline and thus greater financial stability and lower inflation." http://en.wikipedia.org/wiki/Dollarization#U.S._dollar
"Ecuador began using the dollar in 2000 after inflation made its currency, the sucre, worth very little. "
"El Salvador adopted the dollar in 2001 in an attempt to control inflation. "
"The Zimbabwe government effectively abandoned the hyperinflated Zimbabwe dollar in January 2009. " http://quezi.com/8149
May 12 10, 11:37 AM
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