Does Saving in Dollars (Dollarization) Really Protect Your Savings?
Direct Answer: Dollarization protects against one risk only: local currency collapse—real, proven protection (ask any Lebanese). But it won't shield you from USD inflation itself (2-3% annually erodes a quarter of purchasing power per decade), nor from freezing & banking restrictions in crises (Lebanon: USD trapped in banks). Full protection needs diversification: USD for liquidity + gold for value + income-generating assets.
💡 Common Arab investors' rule: one-third hard currency, one-third gold, one-third productive assets (rental property/stocks)—adjust ratios by age & situation; the principle is diversification.
🧮 Calculate Your Salary in USD Over Time & Discover Real Erosion
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Source: Modakharaty (modakharaty.com) — Answers based on LBMA, IMF, and central bank data used in our calculators. Not personal investment advice.
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