Javier Milei, the libertarian president of Argentina, has ruled out the possibility of applying his dollarization plan during 2024. In an interview with local media, Milei stated that while dollarization and the free convertibility of coins was the final goal of his administration, there was no time to clean up the country’s economy and implement it this year.
Argentine President Javier Milei Rules out Dollarization Process in 2024
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Javier Milei Drops Dollarization Plans for 2024
Argentine President Javier Milei is slowing down the application of its libertarian reforms. One of the key promises of Milei during its presidential campaign, the shutdown of the Central Bank of Argentina (BCRA) and the liquidation of its fiat currency, will have to wait until at least next year to come to fruition.
When asked about the subject in a recent interview with local media, Milei stated:
There is no time. Think that if we maintained the current pace of sanitation of the BCRA, it would only be clean at the end of June. Adapting the financial system model can take up to a year.
However, Milei clarified that this was indeed still the goal of his administration and that the relatively small size of the Argentine money base would also help in the implementation of the dollarization and the withdrawal of the Argentine peso. He explained he was receiving reports that supported the dollarization of the country with its current dollar reserves.
Milei specified that while the liquidation of the BCRA could be made using dollars, the U.S. dollar might not be the final currency for Argentina after this process., detailing that each sector of the economy could use a different currency depending on its specific activities. “The result is a currency basket where the weights are freely determined by individuals, which neutralizes you from the effects of the monetary policy of a particular country,” he concluded.
The dollarization issue has not even been discussed with the International Monetary Fund (IMF), an organization that recently approved a disbursement of $4.7 billion as part of a refinanced payment plan for Argentina’s $44 billion debt.
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