Argentina’s economy minister and presidential candidate, Sergio Massa, renewed his criticism of opposition candidates who propose to “dollarize” the economy or go to a bimonetary system in the South American country.
“Some propose dollarization without further ado: putting the flag of the United States on the door of the Central Bank. Some others propose cowardly dollarization, which is to make the two currencies coexist for a while because they do not dare to propose dollarization directly,” Massa said Saturday at an event in the Buenos Aires town of San Vicente.
“The opposition candidates propose to deliver the Argentine currency and transform the country into a place without a development destination because it will not have its own currency,” Massa said.
Libertarian economist Javier Milei, the most-voted candidate in the primary elections last August, proposes closing the Argentine Central Bank and “dollarizing” the economy, a process that he believes could take between 9 and 24 months until the daily circulation of the US dollar on the street.
Massa, the second-most-voted candidate in the primaries, argues that the exchange rate “trap” cannot be lifted suddenly due to the inflationary effects that a strong devaluation of the Argentine peso would entail and its consequences in terms of increased poverty levels.
“To end the restrictions, Argentina must first achieve a normal flow of trade and foreign exchange, which could be achieved by 2024 hand in hand with an improvement in exports that allows it to recompose the meager monetary reserves and achieve fiscal balance,” Massa said.
