Argentina has unveiled plans for a dual currency system to follow a likely painful devaluation in a bid to rescue Latin America's third largest economy from meltdown.
New President Mr Eduardo Duhalde's crisis plan envisages converting Argentines' dollar debts into pesos at the current exchange rate, "sharp" spending cuts and possibly capping the prices of goods and services to avoid an inflationary spiral, top aides said.
The plan still needs approval from Congress, which chose Mr Duhalde as president on Tuesday.
The government also planned a "sharp" reduction in public spending - as demanded by the IMF and US government - and expected to see "favourable effects" from the plan in six months, he told local radio.
Converting dollar debts into pesos should help shield the average Argentine from the impact of the devaluation, but it shifts the burden to the banks, which will need help.
"Without support the banks would not remain viable," Lehman Brothers said in a research note. "Given that the government neither has the means to provide this support nor defend/shepherd the floating or re-pegged peso, we assume IMF support."
However some analysts expect a dual exchange rate system to simply open the door to more of the endemic corruption that helped bankrupt Argentina in the first place.
Devaluation will cut the wages and savings of millions of people, bankrupt many companies and raise the prices of basic goods from flour to gasoline and radios.
The Peronists hopes devaluation will only be a short-term sacrifice for Argentina's 36 million people, eventually boosting growth by lowering labour costs and making exports cheaper and more competitive.