As a response to the severe recession in the wake of the emerging market crises in 1997-98, the possibility of an official dollarisation of the Argentine economy has been discussed intensively in both political and academic circles.
Such a solution would imply the removal of the US dollar-based currency board arrangement which was adopted in 1991 and which has served Argentina well over the past few years. If a country wishes to adopt unilaterally a stable foreign currency as legal tender, several factors should first be taken into consideration.