Title: Currency substitution - Wikipedia
Headings: Currency substitution
Currency substitution
Contents
Name
Origins
Measures
Types
Effects
On trade and investment
On monetary and exchange rate policies
On banking systems
Determinants of the currency substitution process
The dynamics of the flight from domestic money
Institutional factors
Anchor currencies
Australian dollar
Euro
Indian rupee
New Zealand dollar
Pound Sterling
South African rand
US dollar
Countries/regions using the US dollar exclusively
Countries using the US dollar alongside other currencies
Others
See also
References
Footnotes
Works cited

Content: 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. Contents
1
Name
2
Origins
3
Measures
4
Types
5
Effects
5.1
On trade and investment
5.2
On monetary and exchange rate policies
5.3
On banking systems
6
Determinants of the currency substitution process
6.1
The dynamics of the flight from domestic money
6.2
Institutional factors
7
Anchor currencies
7.1
Australian dollar
7.2
Euro
7.3
Indian rupee
7.4
New Zealand dollar
7.5
Pound Sterling
7.6
South African rand
7.7
US dollar
7.7.1
Countries/regions using the US dollar exclusively
7.7.2
Countries using the US dollar alongside other currencies
7.8
Others
8
See also
9
References
9.1
Footnotes
9.2
Works cited
Name
"Dollarization", when referring to currency substitution, does not necessarily involve use of the United States dollar. The currencies that have been used as substitutes have been the US dollar and the Australian dollar. " Euroization" involves substituting the currency with the euro . Origins
Map of current exchange rate regimes (2018) De facto exchange-rate arrangements in 2018 as classified by the International Monetary Fund. Floating ( floating and free floating)
Soft pegs ( conventional peg, stabilized arrangement, crawling peg, crawl-like arrangement, pegged exchange rate within horizontal bands)
Hard pegs ( no separate legal tender, currency board)
Residual ( other managed arrangement)
Main article: Bretton Woods system
After the gold standard was abandoned at the outbreak of World War I and the Bretton Woods Conference following World War II, some countries sought exchange rate regimes to promote global economic stability, and hence their own prosperity. Countries usually peg their currency to a major convertible currency. " Hard pegs" are exchange rate regimes that demonstrate a stronger commitment to a fixed parity (i.e. currency boards) or relinquish control over their own currency (such as currency unions) while "soft pegs" are more flexible and floating exchange rate regimes.