Under dollarization,a country

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Under dollarization, a country abandons its own currency and adopts the money of another country, typically the US Dollar. This eliminates the need for the country to issue and maintain its own currency, and also reduces the risk of currency fluctuations and devaluation. However, it also means that the country loses control over its monetary policy and could potentially be vulnerable to shocks in the currency of the country whose money it adopted.

Under Dollarization,a Country