El Salvador move to dollars seen risky but viable

El Salvador must keep a tight rein on government spending to succeed with a controversial plan to introduce the US dollar into general use and jump-start its economy, economic analysts say.

President Francisco Flores's proposal last week to bring the US dollar into regular circulation and fix the exchange rate against the local currency, the colon, drew criticism from local economists, bankers and opposition politicians, who called it a dangerous step toward scrapping the colon. But it was bac