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: 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. The collapse of "soft" pegs in Southeast Asia and Latin America in the late 1990s led to currency substitution becoming a serious policy issue. A few cases of full currency substitution prior to 1999 had been the consequence of political and historical factors. In all long-standing currency substitution cases, historical and political reasons have been more influential than an evaluation of the economic effects of currency substitution. Panama adopted the US dollar as legal tender after independence as the result of a constitutional ruling. Ecuador and El Salvador became fully dollarized economies in 2000 and 2001 respectively, for different reasons.