It certainly doesn't end the risk that countries will default on dollar-denominated debt.

Because of the deteriorating trade deficit, which is already making foreign investors somewhat uneasy about dollar-denominated fixed-income debt, Mr. Jones said.

Mexico had plenty of income from export earnings to service the interest on its dollar-denominated debt, but nonetheless lost the confidence of private lenders.

Joint rate cuts would also provide relief to economies with large dollar-denominated debts.

Ever since the debacle on Wall Street in October, the European market for dollar-denominated debt or equity has been nearly dead, investment professionals say.

Central bank reserves held in dollar-denominated debt, however, are small compared to private holdings of such debt.

The devaluations depressed real wages and increased the private sector's burden in servicing its dollar-denominated debt.

A weak dollar doesn't bode well for the market in dollar-denominated debt.

If the government devalues the peso, which has been fixed at $1 since 1992, consumers and businesses will have a hard time paying their dollar-denominated debts.

Bargaining over argentinos would therefore give borrowers and lenders an informal way to settle dollar-denominated debts at less-than-par value.