Domestic liability dollarization

Domestic liability dollarization happens when people in a country use the U.S. dollar, instead of the currency of their own country, in their business transactions. This means that instead of using the local currency when buying things, people use the U.S. dollar. This can happen for a few different reasons. For example, some people may prefer to use the dollar because it's more stable and reliable than their own country's currency. But it also can happen when people are worried that their own currency will lose value, or when it's easier to buy things using dollars. Either way, using the U.S. dollar can be risky because if the value of the dollar changes, it can affect people's expenses.