Argentina Economists Lambaste Dollarization Proposal as ‘Mirage’
- Economists cite hurdles including lack of dollars in country
- Dollarization is backed by presidential candidate Javier Milei
A money changer holds US hundred dollar banknotes and 1000 peso banknotes in Buenos Aires, Argentina.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
Argentina economists lambasted a proposal to dollarize the nation that’s backed by presidential candidate Javier Milei, calling the idea a mirage and warning it would spawn a new set of challenges.
The country lacks the needed amount of dollars, and efforts to build up supply would entail “absurd” increases in debt, further compromising public finances, dozens of prominent economists wrote in a letter released on Sunday. Adopting the dollar doesn’t make sense given the complexities of Argentina’s economy and the fact that it’s little correlated with the US, they wrote.