Dollarization

A system in which the currency of another nation circulates as the sole legal tender.

Some countries that are dollarized are British Virgin Islands,Caribbean Netherlands, Ecuador, El Salvador, Marshall Islands, Federated States of Micronesia, Palau, Turks and Caicos Islands. Panama is the the oldest country to be dollarized, having adopted the U.S. dollar as legal tender since 1904.
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