Dollarization: Mixed Results When Countries Adopt the US Dollar
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Ecuador adopted the US dollar in 2000 to recover from a banking crisis and control hyperinflation.
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El Salvador switched to the dollar in 2001 hoping to attract investment and reduce currency risks, but it increased costs for the poor.
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Panama has used the dollar alongside its local balboa since 1904 when the Panama Canal was built.
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In Venezuela, dollar use emerged informally in 2018 as hyperinflation made the bolivar unusable, despite anti-US rhetoric.
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Some countries like Peru and Uruguay use both local currency and dollars, with people using dollars for certain purchases and services.