President Javier Milei believes that his long-standing goal of dollarization for Argentina is close to becoming a reality.
He confidently asserts that there is an 85.7 percent probability of successfully completing the dollarization process.
Nevertheless, the leader of La Libertad Avanza stated that before Argentina officially adopts the greenback as its currency, there is a need for the government to rectify the Central Bank’s balance and promote financial reform.
“According to the head of state in a radio interview, there is a high likelihood of being able to adopt the dollar as our currency, with an 85.7 percent chance.
However, the transition can only happen once the financial assets are fully resolved and the instant reform of the financial system is completed. Due to the lack of immediate progress, dollarisation is currently not feasible,” the head of state emphasized.
He disclosed that the government’s estimation is that they will finish the process of cleaning up the remaining funds of the Central Bank by the middle of this year.
“When you choose to dollarise, you will always do so at a market rate. Dollarisation results in the absence of a monetary policy, which is why it becomes necessary to adjust the financial system as you no longer have a lender,” he emphasized.
In a different part of the interview, the president indicated that elevated levels of inflation are a result of excessive printing of money.
“In terms of price impact, it requires 18 months, and during that time, the Kirchnerism political movement was present. I am not responsible for this decrease in people’s ability to purchase, my role is solely to address and rectify it,” he stated as a defense.
– TIMES/NA
