what is an example of a country that makes use of another nation’s currency? france germany panama mexico
What is an example of a country that makes use of another nation’s currency?
Response:
An example of a country that uses another nation’s currency is Panama. Panama uses the United States Dollar (USD) as its official currency. This practice is known as dollarization, where a country adopts a foreign currency as its own legal tender for various reasons such as economic stability, inflation control, and trade facilitation. In the case of Panama, the adoption of the U.S. Dollar has provided financial stability and reduced transaction costs due to its close ties with the United States.