How does dollarization work, with respect to buying dollars using the soon-to-be obsolete currency?

External question — Economics Stack Exchange Author: Slava Knyazev Original post: https://economics.stackexchange.com/questions/57559 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm reading about the plans of the new Argentinian government and wondering how their plans for dollarization are possible . Let's imagine that the Argentinian government has 100 pesos that are worth 10 dollars. They wish the exchange those 100 pesos, and keep 10 dollars instead in their reserves. How do they proceed? The plan sounds as if they want to offer the pesos to holders of dollars, and exchange them. But why would anyone be willing to accept the pesos, if they know that Argentina has no intention of ever accepting them?