Argentine Presidential Candidate Proposes Dollarization Plan to Tackle Inflation
Presidential Candidate Presents Dollarization Plan to Fix Argentine Economy Argentine Presidential candidate, Javier Milei, has proposed a dollarization plan to tackle the country’s historic devaluation and 100%+ interannual inflation. The plan would convert all deposits and reserves of central and private banks to U.S. dollars, and has divided the population and economists alike. While Milei sees it as a feasible solution to Argentina’s problems, critics point out the cost, estimated at $40 billion, and the potential loss of national monetary policy. Supporters, like former Treasury Minister Domingo Cavallo, suggest it could stabilize the country before undergoing a series of reforms to mitigate any adverse effects on wages and pensions.
Clever Robot News Desk 28th April 2023