Javier Milei, a presidential candidate, promises to introduce the U.S. dollar to Argentina before 2025 if elected.
First, Milei plans to handle the Central Bank’s debts. These debts include various financial tools like Leliqs.
He will calculate the dollars needed by dividing total pesos by the current exchange rate. Right after the election, he wants to call special Congress sessions.
During these sessions, he’ll propose new laws. One major law will end the Central Bank’s operations.
Then, he discussed timing by giving examples. Ecuador tried to switch to dollars in three months but took nine.
El Salvador was more careful, taking 24 months. Milei thinks Argentina’s case is closer to Ecuador’s. However, he believes people will decide the actual time needed.
Milei also faced allegations from President Alberto Fernández recently. In a press conference, Milei denied any wrongdoing.
He criticized the current government for their failing economic policies.
In summary, Milei wants to change Argentina’s currency to the U.S. dollar quickly. He has a plan and is ready to act if he wins the election.
The public’s reaction to this bold move is yet to be seen.
Background
Milei’s plan is not new in Latin America. Ecuador and El Salvador already use the U.S. dollar.
However, such a move is controversial. Critics argue it can lead to loss of financial control. In Argentina, this issue is sensitive due to past economic crises.
Political leaders are divided on dollarization. Some believe it can bring stability, while others see risks.
As the election approaches, Milei’s plan will be a hot topic, possibly influencing voters.
Public opinion will play a significant role in determining the feasibility of this radical economic reform.