What is dollarisation?

"Dollarisation" (also known as dollarising or dollarification) is the large-scale use of the American dollar as a means of payment or currency for setting prices and issuing quotes, particularly in countries with a weak currency where the domestic currency is distrusted by the population because of high inflation.

Sometimes countries even officially replace their own currency with the dollar as legal tender or use the dollar and the domestic currency alongside each other. Upon the abolition of the domestic currency, monetary supervision lapses, as does the ability to pursue one's own monetary policy, which limits control over the economy. Although the dollar has historically been a dominant world currency, its role has come under increasing pressure in recent years.