What's it? Dollarization means adopting the U.S. dollar as a currency and unit of account by countries other than the United States. The term also has a broader meaning: the adoption of foreign currency by a country other than its issuing country.
Exchange Rate Regime
Pure Floating Exchange Rate: Flexibility & Volatility (Pros, Cons)
What's it? A pure floating exchange rate, or free-floating exchange rate, is a system of exchange rates in which the value of a domestic currency against a foreign currency moves according to a market mechanism. The market mechanism is the
Exchange Rate Systems: Fixed vs. Floating & Popular Variations
The exchange rate system plays a critical role in the global financial landscape, dictating how currencies are valued against each other. In essence, it's the framework a country adopts to manage its currency's exchange rate. This guide will explore
Fixed Exchange Rates: Stability vs. Flexibility (Factors, Impacts, Pros, Cons)
A fixed exchange rate is an exchange rate system in which domestic currency is pegged to other currencies or gold prices. For instance, imagine a country with a fixed exchange rate system where the Euro is pegged to the US dollar at a fixed rate of