With the rule of law (and the sucre) in shambles, President Jamil Mahuad announced on January 9, 2000 that Ecuador would abandon the sucre and officially
dollarise the economy.
Some traders have shifted to US dollar as the preferred medium of exchange and better store of monetary value, first sign that our economy is about to
dollarise.
It plans to
dollarise an additional $1 billion during 2015/16 to save another Rs 360 crore.
But in what could be an ominous sign for employees of British exporters to the US, Rolls says it also plans to increasingly "
dollarise" its business by moving production either to the US or to countries whose currencies have more favourable exchange rates with the dollar.
The best that Canada might hope to do is to '
dollarise' itself completely.
As we've seen before with the bond note it's best to re-
dollarise or join the rand union and forget about this [RTGS]," he said in a telephone interview.
The decision to officially
dollarise (or euroise) an economy is of a level of importance not easily matched by other economic policy decisions.
Eichengreen, Barry (2000b), "When to
dollarise," Journal of Money, Credit and Banking, forthcoming.
(7) An immediate and apparently simple solution would be to get rid of the domestic currency and
dollarise. As argued by Eichengreen and Hausmann (1999), this would do away with currency mismatches and reduce maturity mismatches, because of the possibility to borrow more long-term in dollars.
Eichengreen, Barry, (2000), "When to
dollarise," Journal of Money Credit and Banking, forthcoming.
The one brief brush with full, official dollarisation occurred in 1983: a proposal by the then Finance Minister Yoram Aridor was immediately deemed completely unacceptable by popular acclaim and Aridor resigned the very same day that he made a formal proposal to
dollarise.