Three American 100 dollar bills with a blurred Argentinian flag in the background. Photo: El Cronista/File photo.
Argentina’s minister of economy and presidential candidate, Sergio Massa, has reiterated his disagreement with candidates who suggest dollarizing the economy.
Mass said in an event held this Saturday in the town of San Vicente, in the province of Buenos Aires: “Some propose dollarization without more than just that: putting the flag of the United States on the door of the Central Bank. Others propose a cowardly dollarization, to make the two currencies coexist for a while because they do not dare to propose a direct dollarization.”
The minister said that the opposition candidates, Javier Milei and Patricia Bullrich, propose to abandon the Argentinian currency and in turn convert the country into a place with no prospects for growth, since it would not have its own currency.
He added that: “We all know that the best way to develop our homeland is to strengthen our currency and not depend on anyone. We don’t want to continue to be beggars of the world. We don’t want to keep borrowing.”
The minister of economy, who has decided to remain in office despite the ongoing electoral campaign for the upcoming presidential elections in October, has pointed out that drastic changes in monetary policy cannot be made suddenly, as this could lead to effects of inflation, a strong devaluation of the local currency and an increase in poverty levels.
Dollarization in Argentina: a viable strategy?
The proposal for dollarization in Argentina, which has been supported by the Argentinian elite since the 1970s, has been revived by the extreme right wing, represented by Milei, under the pretext of putting an end to the high inflation rate in the South American country.
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However, observers consider that this proposal lacks solid evidence and seems to be driven more by emotion than logic, since dollarization would limit the state’s ability to establish autonomous development policies and would tie the Argentinian economy to US monetary decisions.
Furthermore, this initiative would not solve the current problems of the Argentinian economy and could lead to an economic contraction and collapse, similar to those that have occurred in the past.
(HispanTV)
Translation by Orinoco Tribune
OT/ECS/DD
