<p>I'm reading about the plans of the new Argentinian government and wondering how <a href="https://www.bnnbloomberg.ca/what-is-dollarization-and-why-is-argentina-considering-it-1.2011307" rel="nofollow noreferrer">their plans for dollarization are possible</a>.</p>
<p>Let's imagine that the Argentinian government has 100 pesos that are worth 10 dollars. They wish the exchange those 100 pesos, and keep 10 dollars instead in their reserves.</p>
<p>How do they proceed?</p>
<p>The plan sounds as if they want to offer the pesos to holders of dollars, and exchange them. But why would anyone be willing to accept the pesos, if they know that Argentina has no intention of ever accepting them?</p>

CC BY-SA 4.0
2024-02-01T22:20:52.040Z
Could you provide some reference for their plans?
1muflon1
CC BY-SA 4.0
2024-02-02T20:48:12.600Z
In [interview](https://www.youtube.com/watch?v=Sai3gC9LZYI)(minute 3:30) Milei alleged that the intent is a "free competition among currencies" rather than currency replacement all across the board.
Iñaki Viggers
<currency-exchange><argentina>
How does dollarization work, with respect to buying dollars using the soon-to-be obsolete currency?
Slava Knyazev
# How does dollarization work, with respect to buying dollars using the soon-to-be obsolete currency?

(Asked by: username_0 on 2024-02-01)

I'm reading about the plans of the new Argentinian government and wondering how [their plans for dollarization are possible](https://www.bnnbloomberg.ca/what-is-dollarization-and-why-is-argentina-considering-it-1.2011307).

Let's imagine that the Argentinian government has 100 pesos that are worth 10 dollars. They wish the exchange those 100 pesos, and keep 10 dollars instead in their reserves.

How do they proceed?

The plan sounds as if they want to offer the pesos to holders of dollars, and exchange them. But why would anyone be willing to accept the pesos, if they know that Argentina has no intention of ever accepting them?

**Tags:** currency-exchange, argentina

> **Comments:**
> **username_1**: Could you provide some reference for their plans?  
> **username_2**: In [interview](https://www.youtube.com/watch?v=Sai3gC9LZYI)(minute 3:30) Milei alleged that the intent is a "free competition among currencies" rather than currency replacement all across the board.  

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## 0 answers

