Title: The U.S. Dollar's Unofficial Status as World Currency
Headings: The U.S. Dollar's Unofficial Status as World Currency
The U.S. Dollar's Unofficial Status as World Currency
Overview
Why is the U.S. dollar the currency of choice?
How do all those dollars get overseas?
The Bottom Line

Content: Semi-dollarization: A country will use both its own currency and the U.S. dollar interchangeably as legal tender. Lebanon and Cambodia are good examples of this. Unofficial dollarization: For many countries in the developing world, the dollar will be widely used and accepted in private transactions, but it is not classified as legal tender by the country's government. While many people associate dollarization with the U.S. dollar, the association is not exclusive. The euro, South African rand, Russian ruble, New Zealand dollar and Australian dollar are also accepted outside their countries, although in a localized nature. For example, the Russian ruble is accepted in a number of countries from the old Soviet Union. Why is the U.S. dollar the currency of choice? Stability is one of the major factors that explains why a number of countries have adopted the U.S. dollar as official currency.