"Dollarization" (also called dollarization or dollarification) is the widespread use of the U.S. dollar as a means of payment or currency for setting prices and making offers, especially in countries with a weak currency where the home currency is distrusted by the population because of high inflation.

Sometimes countries even officially replace their own currency with the dollar as legal tender or use the dollar and their own currency side by side. Abolishing its own currency removes monetary surveillance, as well as the ability to conduct its own monetary policy, which limits control over the economy. Although the dollar has historically been a dominant world currency, its role has been under increasing pressure in recent years.