Argentina uses its peso for day-to-day transactions but the US$ for property sales. Obviously people want to save their money in US$ for this reason but also because it is more stable than their own currency.
However the government only allows 20% of your declared income to be converted i.e. income they've paid tax on; apparently there is widespread evasion.
There is now a 'blue market' for US$ - not illegal but not through financial institutions. Through a bank you would get about 8 pesos to the dollar, but on the blue (street) arket you will get 12 or more.
It means that for an Argentinian they must pay 800 pesos for every 100 dollars, or more than 1,200 through a blue market operation. Therefore it is worth their while to declare more income and get the bank rate on 20% of it.
As it tourist it's a bit of a pain as you have to follow a guy down a back alley and you don't know if you are going to be passed fake notes, conned or even mugged. It also sniffs a bit of money laundering, converting peoples undeclared income.
Equator abandoned its currency in 2000 and now uses the USD.
Ireland's punt was linked 1=1 to GBP until 1979 when it was floated until 1999 when it was fixed to the DEM at 2.48.
Topic: what countries have their own currency but for some unknown reason.............. (Read 1611 times)