Inter-American Development Bank President Enrique V. Iglesias has been advised by El Salvador authorities that their government has approved the U.S. dollar as a legal tender with a fixed parity in relation to the Salvadoran Colon. At the same time, the Salvadoran government has advised the IDB that it has undertaken an evaluation of the costs and benefits of this measure and of the macroeconomic conditions that ensure its viability.
"As we have reiterated, any decision on monetary systems should be the exclusive responsibility of society and government in each country," commented Iglesias. "Each case is a special circumstance and should be evaluated on its merits. We believe that in view of the performance of El Salvador in recent years, the measure is another positive step for development policy, the fight against poverty, and modernization of the country."