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What is dollarization

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Reference no: EM133169730

The opening case describes the currency crisis in Venezuela. Despite having the largest oil reserves in the world, Venezuela is on the brink of complete collapse. Crude oil has been Venezuela's primary export, yet oil output in 2017 was just half of 1998 levels. Decades of corrupt government actions have left the country in a desperate situation with inflation rates as high as 2700 percent per year and a currency that is virtually worthless. While the International Monetary Fund (IMF) would normally step in to help with the currency crisis, Venezuela's president Nicolas Maduro seems to be more partial to another solution, dollarization.

What is dollarization? Can it work in Venezuela?

What caused the currency crisis in Venezuela?

What do you know about " OPEC" ?

Reference no: EM133169730

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