That's true but to my mind, that doesn't apply to every country. For example, in my country, people convert local currency into USD because our society trusts the United States for some reason. People see the USA as ally and USD as the best currency to hold. Many people think that the US is a global superpower that never makes mistakes and that manages everything in the world. I don't know where these conspiracy theories come from but people are willingly holding USD here instead of stocks and crypto. The majority of our population has no idea what stock or crypto is.
This happens in a lot of countries but in those cases it is because of the inflation. People don't like investigating how the stock market works and it is hard to enter it as well. Crypto market is also too volatile to enter too. So they just buy USD or gold instead. Like Argentina where 1 dollar went from 100 peso to 1000 pesos in past 5 years. In your case, I have to say it is strange because AFAIK your country has a very low inflation rate (less than 1%) and your currency has been stable against the dollar which means there is no incentive for people to bag hold dollar. In fact dollar got dumped against your local fiat over the past 5 years, from 3.27 to 2.7 Lari so those who bag held dollar have actually lost money.
