For the advisor there is only one way to achieve this and it would be by establishing “a LATAM conversion box”. A currency board is the system that issues a local currency fully backed by a strong international currency at a fixed exchange rate.
The father of “one on one”
Hanke recommended making a currency board in Argentina 32 years ago, in 1991, when the then president, Carlos Menem, asked him for advice. Finally, parity was reached through convertibility, carried out by the Minister of Economy, Sunday Horse.
“Although the convertibility system crushed hyperinflation and gave Argentina one of its few decades of monetary stability, it was not a currency board,” Hanke said but clarified that there “The local currency was linked to the dollar, but the Central Bank of Argentina could participate, and it did.”
Source: Ambito
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