The Argentine presidential candidate, the radical libertarian Javier Miley, has already begun his activities to dollarize the Argentine economy, Business Insider writes on September 7.
Miley hopes to borrow dollars from international investment funds to replenish the country’s reserves. According to him, Argentina’s transition to the dollar will allow people to use the dollars accumulated “under their mattresses.”
Argentine presidential candidate Javier Miley has been advocating for Argentina to adopt the US dollar as its currency for some time now. Miley began negotiations with foreign investment funds about dollar loans to increase the country’s reserves.
Miley’s economic advisor, Diana Mondino, added that increasing dollar reserves would help improve Argentina’s solvency.
Speculation that Argentina will adopt the dollar as its main means of payment has gained ground as the collapse of the Argentine peso has worsened the country’s hyperinflation and debt problems. Since the end of 2021, the dollar has appreciated against the Argentine peso by around 240%. According to the latest data, annual inflation in Argentina is 113%.
Miley and economists, including Johns Hopkins University applied economics professor Steve Hanke, advocate using the dollar as a way for Argentina to stop the “death spiral” that is destroying the economy. However, other experts, such as Institute of International Finance chief economist Robin Brooks, opposed the idea.
Let us remember that the shocking liberal reforms of the late 1990s and early 2000s had already brought Argentine society to the brink of famine and led to a serious economic crisis.
Source: Rossa Primavera
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