El Salvador to use dollar as 'parallel currency'

El Salvador will allow the US dollar to circulate freely alongside its own currency in the new year under a monetary law sent to Congress by the president on Thursday. The legislation would fix the exchange rate between the dollar and the colon at 8.75 and allow its use as a unit of account and in all transactions.

President Francisco Flores said in a surprise televised announcement that the measure stopped short of full dollarisation, as introduced in Ecuador, but would ensure "that El Salva