Libertarian Javier Miley, winner of the elections, plans to introduce the US dollar as the official currency in Argentina, abandoning the national currency, Eleconomista.es reports on November 20.
Miley wants to abolish the central bank, carry out large-scale dollarization and privatization in the country.
By ditching the peso to control high inflation, Argentina will become the tenth country to use the US dollar as its official currency. In October, inflation in Argentina rose to 142.7% annually.
This will be the largest transition of a state to another country’s currency in history.
Let us remember that the far-right politician Javier Miley won the presidential elections in Argentina on November 19. He is due to take office on December 10.
We also remember that in addition to the United States, the dollar is used by Panama (since 1904), Micronesia, Marshall Islands and Palau (since 1944), East Timor and Ecuador (since 2000), El Salvador (2001) and Zimbabwe. (since 2009).
In Zimbabwe, inflation reached 79.6 billion% monthly in 2008, but in 2009 the country moved to an annual deflation of 7.7%. However, the use of the dollar did not prevent a new round of price growth, which began in 2018, accelerating inflation by 12 times. The Zimbabwe government attempted to abandon the dollar in 2019, but still extended its use until 2030.
Source: Rossa Primavera
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