El Salvador to dollarise

12 December 2000

El Salvador is planning to make the US dollar legal tender in January as part of efforts to strengthen the country’s economy. IMF managing director, Horst Köhler, and US Treasury Secretary, Lawrence Summers, welcomed the plan. The IMF said it would begin negotiations on a new economic programme with the government if related fiscal measures were implemented. If approved by the nation’s national assembly, El Salvador would become the third Latin American country to adopt the greenback, after Panama and Ecuador.

IMF document