Talk:Currency substitution/Archives/2013

Define "pegging"

The term "pegged" is used in the article multiple times. How is this word defined, relative to this article? I presume that it means that the value of the local currency is defined by law as being equal in value to a foriegn currency of the same denomination, however this is only an educated guess. Is there some known reference to support that?Gawain VIII (talk) 16:15, 4 May 2011 (UTC)

Four year time lag!

This article needs a serious update to euro-time. Personally, I removed some content that said "euro should become a strong rival to U.S. dollar in ... [countries mentioned]".

SHOULD become?? Is the article seriously implying that euro is a future event? On what year was this written? Is this a printed or an online encyclopedia?

I won't fix the article because I have no expertise. Someone with financial and monetary knowledge could do the job.

80.221.61.8 13:49, 27 January 2006 (UTC)

Text structure is chaotic

Nothing more to say. I know little on the topic, but it is easy to notice if the article is bad. This one REALLY is terrible. It is absolutely too long, chapter structure is as messy as a vomit -- the article even seems to contain several sections that greatly overlap each other. Also it is in places SERIOUSLY out-of-date, even as much as six years.

Greetings, 80.221.61.8 14:01, 27 January 2006 (UTC)

I agree whole-heartedly with the anon above. —Nightstallion (?) 14:06, 27 January 2006 (UTC)

NOT COPYVIO

The text for this article was originally taken from this site. Even the site claimed to be the source for a copyvio (http://www.sica.gov.ec/ingles/docs/basics_of_dollarization.htm) says the text is a US Senate report. The source site has a copyright notice that reads "All rights are reserved by the various authors or organizations, except that there is no copyright on the papers originally issued by the Joint Economic Committee of the U.S. Congress." (Like the one used here).--Bkwillwm 13:31, 30 January 2006 (UTC)

Look at it. It's worthless for the purposes of a user-created encyclopedia. Let the slate be cleaned. Lotsofissues 13:39, 30 January 2006 (UTC)

There's no requirement that everything be original, much of Wikipedia is taken from other sources. Obiviously, the article is much longer than it should be. The text needs to be cut down. All other things aside, it's not a copyvio and should not treated as one.--Bkwillwm 16:07, 30 January 2006 (UTC)

Nothing is written prohibiting the dumping of piles of text--except, a common sense respect for the function of Wikipedia. This text doesn't just need to be "cut down", it needs be wrecked apart. In its current form, it is not an encyclopedia entry. It is dry, lengthy, and unusable to the reader. And it is a 4 hour cleanup task to any editor. Dumping has essentially disabled this page. I'm going to revert it back unless you want to clean it up.

Lotsofissues 00:13, 2 February 2006 (UTC)

Removed Danish krone

I have removed references to the use of Danish kroner in Greenland and the Faroe Islands as dollarization. These countries are parts of the Kingdom of Denmark (although with special constitutional status), so it is nothing special that they use the same currency as the rest of it (Faroese banknotes have their own design, but are printed and issued by the Danish National Bank). It would seem to be more useful to reserve the term "dollarization" to the situation where a politically independent sovereign state officially uses the money of another. Otherwise those genuinely interesting cases would be lost among various overseas territories and dependencies such as "Puerto Rico uses U.S. dollars" or "the Gibraltar pound is at par with GBP". Henning Makholm 16:30, 5 May 2006 (UTC)

How about a split for dependencies and for sovereign nations? —Nightstallion (?) ^{Seen this already?} 17:39, 8 May 2006 (UTC)

Questions re: a few currencies

The Bahamian dollar, Netherlands Antillean gulden, and Aruban florin are all pegged to the US Dollar. Would these be proper examples of dollarization? RB McLeroy 14:53, 1 December 2006 (UTC)

I wouldn't say that the Bahamian dollar is a proper example; pegging is different from all-out dollarization. If you go to El Salvador and sell some goods at the market, you will be paid in actual, genuine Federal Reserve notes which you can bring to the USA and start using immediately. Conversely, go to the Bahamas and sell something; you will get some local piece of paper that the local central bank happens to promise that you can exchange to US dollars at par. If the bank (or the entire country) goes belly-up before you get around to doing the exchange, you're screwed. Or, said differently: cash holdings in the Bahamas are in principle vulnerable to the government deciding overnight to devalue or unpeg their currency; such is not the case for truly dollarized economies. (This is not to say that pegged currencies must not be mentioned in the article, but a proper distinction should be made). Henning Makholm 01:01, 3 December 2006 (UTC)

Lebanon?

What about Lebanon? The Lebanese Lira and the US Dollar are used interchangeably, ATMs dispense both currencies and prices are sometimes quoted in dollars and sometimes in Lebanese Lira.--Soylentyellow 18:43, 7 April 2007 (UTC)

That would seem to be an example of an unofficially dollarized economy; note that the explicit list in the article only covers official dollarization (i.e. where for example the state's own accounts are kept in the foreign currency). –Henning Makholm 18:44, 10 April 2007 (UTC)

Gibraltar

I've removed Gibraltar because although euros are widely accepted in shops and restaurants in the areas frequented by tourists, Government offices and the Post Office in particular refuse them, as do other commercial businesses. Indeed many shops would also take US dollars or any legitimate currency, albeit at a stiff exchange rate. The only legal tender is the Pound Sterling, either with UK or Gibraltar issued notes. Although one ATM will issue euros, the majority in service do not. --Gibnews 20:35, 29 June 2007 (UTC)

As the article says, dollarization can occur unofficially. Euros are unofficially accepted in Gibraltar (Lonely Planet: "The currencies in Gibraltar are the Gibraltar pound and the pound sterling, which are interchangeable. You can use Euros (except in payphones and post offices) but you'll get a better value if you convert them into pounds)". Ergo, Gibraltar's acceptance of Euros and Pounds should appear in the list. The Red Hat of Pat Ferrick ^t 20:51, 29 June 2007 (UTC) Self reverted - I missed that this was a list of "officially" dollarised countries, and Gibnews is correct. The Red Hat of Pat Ferrick ^t 20:59, 29 June 2007 (UTC)

Tut-tut. Someone was a little impetuous there. Chris Buttigieg^talk 21:13, 29 June 2007 (UTC)

It was a simple mistake, which I then corrected when I realised I had made it. Better to admit to your mistake and fix it than to obstinately and stubbornly cling to it, no? The Red Hat of Pat Ferrick ^t 22:24, 29 June 2007 (UTC)

Sighs.... that was only tongue-in-cheek. Chris Buttigieg^talk 08:45, 30 June 2007 (UTC)

South African Rand

Namibia, Swaziland and Lesotho all use the rand as their currency, alongside their own currencies. Is this an example of dollarization? 151.204.122.226 (talk) 20:08, 24 July 2008 (UTC)

Not strictly speaking. These currencies are all pegged to the Rand at par (1 Rand = 1 Namibian dollar = 1 Swazi lilangeni = 1 Lesotho loti), so it is not surprising if a business in these countries accept South African Rand as well as the local currency. —Preceding unsigned comment added by 80.238.139.18 (talk) 11:16, 9 September 2008 (UTC)

---

Should you include Guadeloupe and Martinique amongst territories which use euro ? Or it is not the case because they are french territories and France uses the euro ? Another question : which country is using the indian rupeeh as legal tender ??? Bhutan ?? It is mentioned in the article but it is not said WHICH country is using it. As far as I know, Bhutan has his own currency: the ngultrum. —Preceding unsigned comment added by 78.13.81.39 (talk) 20:43, 21 September 2008 (UTC)

Why is Bosnia not included ? One part uses the euro, while the Sprkska Republic uses the Serbian dinar. —Preceding unsigned comment added by 78.13.81.39 (talk) 20:45, 21 September 2008 (UTC)

Bold text== Cambodia, et.al. ==

As of 2005, all throughout Cambodia, the US Dollar is recognized as their legal tender de facto currency along with the Riel. (The dollar is prefered over the Reil in typical day-to-day transactions). Im certain other undeveloped countries have this system in place as well. —Preceding unsigned comment added by Gizziiusa (talk • contribs) 13:14, 13 November 2008 (UTC)

Article severely lacking

Something significant that could be added would be a section highlighting potential pros and cons of dollarization. --128.122.89.197 (talk) 09:25, 22 July 2009 (UTC)

Good or bad?

The article fails when it doesn't compares the results of dollarization. In Panama, the dollarization is more than 100 years old and in Ecuador as in El Salvador , dollarization has some years. Was dollarization better or worse than a normal currency?Agre22 (talk) 01:30, 12 September 2009 (UTC)agre22

China

Pegs its currency to the dollar within a narrow band. —Preceding unsigned comment added by 128.138.64.76 (talk) 22:23, 29 December 2009 (UTC)

Panama uses Balboa: error in map

There is an error in the map. Panama is not an external adopter of the US dollar, it uses the Balboa and has it paired 1:1. There are dollar coins and notes circulating in Panama, but this happens because of the 1:1 parity. Also, Panama does not currently print (but has done it) its notes, but does mint Balboa coins. The map needs to be fixed to show this.Daniel32708 (talk) 04:52, 25 March 2010 (UTC)

Implementation

Can someone clarify how local issuance of money happens, as the country is now subject of a foreign Central Bank's policies?. Does the former local central bank now act as one of the US Fed's bank branches? How are things affected, if -as in most cases- local GDP/production is lower? How/why different are interest rates while on the same currency as US states? Thanks. —Preceding unsigned comment added by 76.109.143.225 (talk) 14:42, 3 October 2010 (UTC)

Map corrections

The second map misses Slovenia as an Eurozone member —Preceding unsigned comment added by 84.72.45.202 (talk) 10:29, 4 December 2010 (UTC)

Venezuela

Since when Venezuela uses US dollar? The map shows Venezuela as using US dollar. --91.212.199.130 (talk) 11:38, 15 February 2012 (UTC)

Rearrange the structure of this article; need feedback to improve the article

Hello Wiki Community,

I am planning to rearrange the structure of this article by adding two categories of effects of dollarization into the affects section. The current subsection is "on banking system". Proposed subsections might be "on monetary and exchange rate policies" and "on international trade and investment".

May I add one new section as "Determinants of dollarization"? This section will address determinants of actual pattern and speed of dollarization process. I think that this proposed section is important.

In addition, to improve this article, I need to verify sentences without citation.

Please give your feedback on my plan and any recommendation to improve this article.

Thank you very much!

Thuydnguyen87 (talk) 04:06, 28 February 2012 (UTC)

China and others

Could someone explain how China is not a light-yellow "Currencies pegged to the US dollar within a narrow band" country in this map? Is it not exactly that--pegged to the US dollar within a narrow band? There are numerous other countries which de facto peg their currency to the dollar. This map is incomplete at best, and deceiving at worst. If it's not going to be accurate, perhaps it should be removed. -- Masamunecyrus^(talk)_(contribs) 16:03, 30 July 2012 (UTC)