What's it: Dollarization means adopting the U.S. dollar as 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 System: Pros and Cons
What's it: A pure floating exchange rate system is a system of exchange rates in which domestic currency's value against a foreign currency moves according to a market mechanism. The market mechanism, I mean, is the supply-demand in the foreign
Exchange Rate System: Types and Concept
The exchange rate system is defined as the policy framework adopted by a country to manage its currency exchange rates. The two main types of systems are fixed exchange rates and free exchange rates, each with several variants. This term is
Fixed Exchange Rate: Factors, Impacts, Advantages, Disadvantages
A fixed exchange rate is an exchange rate system in which domestic currency is pegged to other currencies or gold prices. For instance, the rupiah exchange rate against the US dollar is fixed at Rp14,000 per USD. The value will remain Rp14,000 per