In 1991, Argentina adopted the “convertibility plan” to reduce its four-digit annual inflation rate. Under this plan, Argentina pegged the peso one-to-one to the U.S. dollar and held a dollar in reserve for every peso the central bank issued. This currency board arrangement enabled the government to eliminate inflation.
Suggested citation: "Argentina," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-08, pp. 09, 08.01.2001.