When a country forgoes its own currency and starts using another country's currency as its own,we say that this country has

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Dollarization refers to the process in which a country uses another country's currency as its own. This typically happens when a country experiences hyperinflation or high volatility in its currency, leading to a loss of confidence in its currency. By adopting a more stable currency, such as the US dollar, the country aims to stabilize its economy and reduce inflation. Currency boards, managed exchange systems, and exchange rate monetary systems are different approaches to managing a country's currency and exchange rate, but they do not involve the adoption of another country's currency as a replacement for the country's own currency.

When a Country Forgoes Its Own Currency and Starts Using