Question

Is Argentina dollarized? Is there a spontaneous dollarization in Argentina? Does it have flexible or fixed exchange rate (2000 - 2019)?

Answer 1

yes, Argentina is dollarized.This process is monetary nuclear option .A few years ago very few countries ,most of them small converted their own currencies for the dollar.Even with its own currency,Argentina has been in and out of financial emergency for decades.Dollarization has its discontents. Not everyone agrees that the best way to restore economic integrity and trustworthiness is to take away policy command and control.

The last year, Argentine government gave serious consideration to dollarisation.Dollarization promises away of avoiding currency and balance of payments crises.

The Argentine currency board pegged the Argentine peso to the U S dollar between 1991 and 2002 in an attempt to eliminate high inflation and fixed economic growth.While it initially met with considerable success,the board's actions ultimately failed.In 2018 Argentine tried severe devaluation of the Argentine peso caused by high inflation ,an increse in the price of US dollarat local markets, and other domestic and international factors.

Argentina's currency the peso, has fallen by about 60 percent against the dollar in2018.so Argentina bring US dollar as their back up currency.