• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
SUBSCRIBE
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home News

Argentina’s New President Proposes Dollarization to Fix Economy

Ashmita Maria by Ashmita Maria
November 21, 2023
in News, Politics, World
0
Javier Milei's face on the currency

Credits: Getty Images

216
SHARES
3.6k
VIEWS
TwitterWhatsappLinkedin

In a bold and potentially transformative move, Argentina’s newly elected President Javier Milei has proposed a radical solution to the country’s dire economic situation: adopting the US dollar as its official currency. This proposal comes as Argentina grapples with triple-digit inflation and a significant devaluation of its currency, the peso.

You might also like

Federal Judge Halts Montana’s TikTok Ban: Preliminary Injunction Issued Pending Lawsuit

Tesla India Entry: Company May Need to Reassess Strategy Amid Government’s Level Playing Field Approach

AllTrails and Imprint: Learn Visually Crowned as App of the Year by Apple and Google in 2023

 

Milei, a right-wing economist, emerged victorious in Argentina’s presidential runoff, capturing nearly 56% of the vote. His victory signals a potential shift in Argentina’s economic policy, particularly in its approach to tackling hyperinflation and reviving its battered economy. Milei’s advocacy for dollarization has been a central theme of his economic agenda, aimed at stabilizing the Argentine economy, which has been in turmoil due to various factors including hyperinflation, debt, and political instability.

 

The Argentine peso has been on a downward spiral since 2008, losing 99% of its value against the US dollar this year alone. In October, inflation in Argentina soared to a staggering 143%, underscoring the severity of the economic crisis. Milei’s blunt assessment of the peso, stating that it “can’t be worth excrement,” reflects the urgency of the situation and his commitment to drastic measures.

 

Prominent economist Steve Hanke, a professor at Johns Hopkins University and a proponent of Milei’s dollarization drive, hailed the election result as a clear endorsement of the dollarization proposal. Hanke has long advocated for Argentina to “mothball” its central bank and adopt the US dollar to curb inflation.

 

However, the path to dollarization is fraught with challenges and risks. Critics point out that adopting the US dollar would significantly diminish Argentina’s autonomy in monetary policy. Additionally, Argentina, with an economy worth $633 billion in 2022, would be the largest economy to officially adopt the greenback, adding another layer of complexity to the endeavor.

 

A fundamental hurdle in Milei’s plan is Argentina’s lack of sufficient US dollar assets to finance a major purchase of the currency. The country’s shortage of US dollars is so acute that it recently used the Chinese yuan to repay part of an International Monetary Fund loan. This scarcity raises questions about the feasibility of a full-scale transition to the US dollar.

 

Markus Jaeger, a global economy analyst at intelligence firm Stratfor, has expressed skepticism about the dollarization plan. He argues that Argentina would be better off reforming its economic regime, considering the country’s political instability and history of poor economic management. According to Jaeger, while full dollarization might be a second-best solution to the inflation and economic instability problem, it comes with substantial risks.

 

The Argentine central bank has not yet responded to these developments, leaving many to speculate about the future direction of the country’s monetary policy under Milei’s leadership.

 

As Argentina stands at a crossroads, the world watches with keen interest. The decision to adopt the US dollar could either be a turning point in stabilizing the economy or a risky venture into uncharted waters. The success or failure of this bold move will not only shape Argentina’s economic future but also offer valuable lessons for other nations grappling with similar challenges.

 

Tags: Argentina EconomyArgentina InflationArgentina planning to adopt dollar currencyArgentina president Javier Mileicurrency
Tweet54SendShare15
Ashmita Maria

Ashmita Maria

Recommended For You

Federal Judge Halts Montana’s TikTok Ban: Preliminary Injunction Issued Pending Lawsuit

by Harikrishnan A
December 2, 2023
0
TikTok Cracks Down on Promotion of Bin Laden’s “Letter to America”

In a significant development, U.S. District Judge Donald Molloy has temporarily suspended a Montana law targeting the popular social media app TikTok. The decision, issued on Thursday, introduces...

Read more

Tesla India Entry: Company May Need to Reassess Strategy Amid Government’s Level Playing Field Approach

by Rounak Majumdar
December 2, 2023
0
Tesla India Entry: Company May Need to Reassess Strategy Amid Government's Level Playing Field Approach

In a momentous milestone, the Indian government has absolutely ruled out any enterprise-specific incentives for Tesla, thereby putting an end to the EV maker's imminent admission into the...

Read more

AllTrails and Imprint: Learn Visually Crowned as App of the Year by Apple and Google in 2023

by Harikrishnan A
December 2, 2023
0
AllTrails and Imprint: Learn Visually Crowned as App of the Year by Apple and Google in 2023

Tech giants Apple and Google have revealed their selections for the best apps and games of the year 2023. AllTrails, a popular hiking and biking companion, took home...

Read more
Next Post
Microsoft

Microsoft experienced a market surge after hiring OpenAI’s Sam Altman.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Nexcopy USB Duplicator

Make data loading to flash drives a simple process. Nexcopy USB Duplicator Systems.

Related News

Blooket

How to hack blooket

September 30, 2022
How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

August 28, 2023
How to send a gift message on Instagram

How to send a gift message on Instagram

August 18, 2023
Cybertruck in a showroom

Tesla Cybertruck Showroom Locations: Where to See the Electric Beast in Person

November 24, 2023
How to get Santa on ring doorbell

How to get Santa on ring doorbell

August 7, 2022
Instagram

How to unfreeze Instagram account

November 21, 2021

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at info@techstory.in

Advertise With Us

Reach out at info@techstory.in

BROWSE BY TAG

#Crypto acquisition AI amazon android Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk entrepreneurship Ethereum facebook flipkart funding Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT Russia Social Media SpaceX startup startups tech Tech news technology Tesla TikTok trending twitter uber whatsapp

© 2023 Techstory Media Pvt Ltd

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2023 Techstory Media Pvt Ltd

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?