Argentina says goodbye to the US Dollar. But for how long ?

The National Government headed by Eduardo Duhalde announced Sunday evening the details of what have been called the total pesification of the Economy or, in other words, the elimination of the US Dollar from the financial system. Therefore, Dollar deposits and debts will be forcefully converted into pesos and indexed to inflation.

The announcements were made by the Economy Minister, Jorge Remes Lenicov, who asked for "international supporting and understanding" on the plan designed to lead Argentina out of the economic and political crisis arose out from four years of recession. "We are going to pesify the whole of Argentina's economy", Remes Lenicov told to a Press gathering, and also forecasted negotiation with the International Monetary Fund to begin within "this week".

The announcement comes two days after the Supreme Court of Justice shocked the nation when it ruled that unpopular banking restrictions were unconstitutional. Analysts see this decision of the Supreme Court as a way to put pressure on the Government not to pass the 28 demands against their members being studied by the Congress. In turn, Remes Lenicov, Sunday said Court decision was "irresponsible" because it "endangered savings security" and announced Bank holidays for Monday and Tuesday.

On Friday, another pot-banging protest took place in Buenos Aires claiming for the return of the deposits retained in banks and for the resignation of the members of the Supreme Court of Justice. However, this time, the protest was less significant than the previous ones and no acts of violence were reported.

Hernan Etchaleco PRAVDA. RU Argentina