Milei announces dollarization plan and responsible for closing central bank in Argentina

Argentinian presidential candidate Javier Milei, who secured a primary victory on August 13, 2023, has expressed intentions to shut down the nation’s Central Bank if elected in the general elections on October 22.

This statement was made during an interview in Buenos Aires on August 16.

Under his prospective leadership, economist Emilio Ocampo, the architect of Milei’s dollarization plan, would spearhead the closure of the Central Bank and lead discussions with the International Monetary Fund (IMF).

Milei’s dollarization strategy proposes the adoption of the U.S. dollar in place of the Argentine peso to combat the country’s soaring inflation rate of 113% per annum.

Drawing inspiration from El Salvador’s model, residents would have the liberty to transact in either the peso or the dollar.

Milei emphasizes that the economy will be fully dollarized once two-thirds of the monetary base have been converted.

Addressing the peso’s diminishing popularity, he stated, “If no one wants pesos in Argentina, the real question is what’s their actual value?”

Furthermore, Milei shared plans to curtail government expenditures to about 13% of the Gross Domestic Product (GDP) by mid-2025.

his includes significant cutbacks in public projects, a reduced ministerial count, and facilitating transactions in U.S. dollars for businesses.

Holding critical views about central banks globally, he especially disparaged Argentina’s Central Bank, ranking it as the worst.

About Milei: Aged 52 and an economics graduate, Javier Gerardo Milei led the August 13 primary election with 30.4% of the votes.

He leans towards the far right, advocating ultra-liberal economic views.

Under the “La Libertad Avanza” coalition, his campaign champions the closure of the country’s Central Bank, elimination of the peso, and the adoption of the U.S. dollar.

Milei identifies as an “anarcho-capitalist” and “libertarian”, opposing state interference and supporting a free market system.

He has also expressed contentious views on topics like climate change and education.

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