The euro is the second most important global currency after the US dollar. However, its international role has not … increased since its inception in 1999. The private sector prefers using the US dollar rather than the euro because the financial … market for US dollar-denominated assets is larger and deeper; network externalities and inertia also play a role. Increasing …

This paper examines if dollarization has had a positive impact on the macroeconomic stability of Latin American … countries. Dollarization refers to either the official or unofficial replacement of local currencies with the U.S. dollar …. Currently four Latin American countries are officially dollarized and the rest experience varying levels of unofficial …

, the U.S. dollar is predominant in international trade and financial flows. The dollar acts as a "vehicle currency" in the … sense that agents in nondollar economies will generally engage in currency trade indirectly using the U.S. dollar rather …