The phenomenon of foreign currency driving out local currencies as a means of payment and a savings vehicle is known as ________.

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Dollarization refers to the use of a foreign currency, particularly the US dollar, as a legal tender in a country. This can occur when a country's local currency loses value or becomes unstable, leading people to prefer to hold or transact in a more stable foreign currency. Seigniorage refers to the profit a government or central bank earns by printing money, while sterilization and devaluation are not directly related to the phenomenon of dollarization.

The Phenomenon of Foreign Currency Driving Out Local Currencies as a Means