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Article: REGION: TREND TOWARD THE DOLLAR CONTINUES WITH NEW LAW IN GUATEMALA PERMITTING USE OF FOREIGN CURRENCIES.
- Article from:
- NotiCen: Central American & Caribbean Affairs
- Article date:
- January 11, 2001
CopyrightCOPYRIGHT 2001 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The movement toward dollarization and a possible monetary union has gathered strength in Central America with passage of legislation in Guatemala permitting free circulation of the dollar and other hard currencies. Meanwhile, confusion reigned during the first weeks of dollarization in El Salvador.
In December 2000, El Salvador adopted legislation (Ley de Integracion Monetaria) to fully dollarize beginning Jan. 1, 2001 (see NotiCen, 2000-12-14). The measure was promoted as a fast way to lower interest rates, attract foreign investment, and reduce inflation. Implementation of the law, however, proved a headache during the first weeks of January.
The ...