The principal economic loss when a country dollarizes is the loss of:

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Seigniorage revenue is the revenue earned by a government from printing money. When a country dollarizes, it adopts the US dollar as its currency and loses the ability to earn seigniorage revenue. This can result in a loss of government revenue and can impact the country's finances. The other options (B, C, D) may be affected by dollarization, but they are not the principal economic loss.

The Principal Economic Loss When a Country Dollarizes Is the Loss