Argentinian President plans to replace peso with dollar

The newly elected Argentinian President plans to replace the peso with the U.S. dollar as legal tender to combat 140% inflation and economic issues. In the 90s, a similar attempt led to a 350% peso depreciation. Dollarisation eliminates exchange costs and foreign exchange risk, but costs 4-5% of GDP and sacrifices monetary sovereignty. Argentina's low U.S. exports and high deficits make it an unsuitable candidate. Restoring fiscal discipline and exploring trade agreements may be a better approach.