Lesson 4 of 5

Dollarisation: when much of the economy runs in US dollars

In some economies people save, borrow, price and pay in a foreign currency, usually the US dollar. Timor-Leste uses the US dollar as its official currency; in Cambodia the riel circulates alongside a dollar that dominates bank deposits. Dollarisation can be measured, it limits what a central bank can do, it creates risks for banks and borrowers, and some countries have reduced it.

Published 16 October 2026