Javier Milei Advances Dollarization Plan in Argentina

Javier Milei, a liberal presidential candidate in Argentina, stated recently that he has the funds needed for the dollarization of the country at the current market prices. Milei noted that his team had signed an NDA (non-disclosure agreement) with unknown third parties that would provide the liquidity needed to close the Central Bank of Argentina.

Javier Milei Develops Dollarization Proposal in Argentina

Javier Milei, a liberal presidential candidate in Argentina, has advanced his government plan to eliminate inflation in the country if elected. He stated he already has the funds to dollarize the economy at current market prices.

Milei, who has made dollarization a pivotal part of his government plan, declared:

While they attack, defame, operate, etc., we have been advancing in negotiations and we have already obtained the dollars to dollarize the economy at the value of the market dollar. We continue working to solve a big problem in Argentina, which is inflation.

Milei explained that he and his team had signed a confidentiality agreement with undisclosed third parties to provide the means necessary for the dollarization process. He estimated that the nation could collect double the dollars needed to withdraw all the Argentine pesos from circulation, closing the Central Bank of Argentina.

Milei is also preparing the law project that will be presented to the Argentine congress and estimating the time for the implementation of this initiative. Milei noted that his first proposal required at least two and a half years to be adopted, while new dollarization formats currently being designed demand less time to be put into practice.

Numbers and Feasibility

The dollarization idea, presented to the public in April as a way out of the inflationary and devaluation crisis, has faced criticism from all angles of the political spectrum. Some economists have spoken against it, stating that it would be impossible to cement during the current economic reality of the country.

However, Milei believes economists have greatly overestimated the numbers associated with this process. He detailed:

They said that [dollarization] was crazy impossible, $70 billion was needed. After, it was $50 billion. Someone close to them told them that although it was difficult, it was feasible. Now it’s about $35 billion. If they knew about finance a long time ago, they would have realized that it is possible.

However, Milei’s position on polls has fallen, now showing him in the third position after Sergio Massa, the economy minister of Argentina and a key figure in the current economic establishment, announced he would join the presidential race.