Back استبدال العملة Arabic Valyuta dəyişdirilməsi Azerbaijani Валутна субституция Bulgarian Měnová substituce Czech Währungssubstitution German Sustitución de moneda Spanish Արժույթի փոխարինում Armenian Penggantian mata uang ID 통화대체 Korean Substituição de moeda Portuguese

Currency substitution

Worldwide official use of foreign currency or pegs:
  United States dollar users, including the United States
  Currencies pegged to the United States dollar
  Euro users, including the Eurozone
  Currencies pegged to the euro

  Australian dollar users, including Australia
  Indian rupee users and pegs, including India
  New Zealand dollar users, including New Zealand
  Pound sterling users and pegs, including the United Kingdom
  Russian ruble users, including Russia and other territories
  South African rand users (CMA, including South Africa)

  Three cases of a country using or pegging the currency of a neighbor

Currency substitution is the use of a foreign currency in parallel to or instead of a domestic currency.[1]

Currency substitution can be full or partial. Full currency substitution can occur after a major economic crisis, such as in Ecuador, El Salvador, and Zimbabwe. Some small economies, for whom it is impractical to maintain an independent currency, use the currencies of their larger neighbours; for example, Liechtenstein uses the Swiss franc.

Partial currency substitution occurs when residents of a country choose to hold a significant share of their financial assets denominated in a foreign currency. It can also occur as a gradual conversion to full currency substitution; for example, Argentina and Peru were both in the process of converting to the U.S. dollar during the 1990s.

  1. ^ New estimates of U.S. currency abroad, the domestic money supply and the unreported Economy Edgar L. Feige September 2011.

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