The top favorite in Argentina's presidential election, Javier Millai: Immediately after the election, the central bank was banned and the dollarization was promoted completely.
Last weekend, the results of the Argentine primary election showed that Javier Millais, the candidate of the far-right party known as "Trump Argentina", received the most votes in the primary.
On Wednesday, local time, Javier Millais was interviewed by foreign media, and this is his first interview with foreign media after winning the primary election.
In the interview, he said that if elected, Argentina would take fiscal prudence to ensure debt repayment, while pushing ahead with a series of economic policies that sounded extremely aggressive.
For example, opening capital limits, closing Argentina's central bank, and achieving full dollarization of the economy.
Argentina, Latin America's third-largest economy, suffers from inflation, which is expected to reach 142.4% in 2023, according to Argentina's Market Expectations Survey released in July.
In this context, the Argentine peso has become difficult to win the trust of its own people, and Millais decided to abandon the local currency at this time, and the use of the US dollar is indeed a solution to the current crisis in Argentina.
Because the credit base of the US dollar and its currency changes will be more stable than the peso, for Argentina today, the use of the US dollar is conducive to basic economic activities and people's livelihood.
But the use of dollars is not without its drawbacks.
First of all, the dollar is issued by the United States, and Argentina cannot influence the monetary policy of the United States, so the monetary policy of the United States is bound to have an important impact on Argentina's economic development.
Second, Argentina itself does not have many dollar reserves, if you want to implement dollarization, you must find the United States, the IMF or the World Bank to borrow, but this loan cannot be unconditional, Argentina either gives interest, or mortgages its important core industries, in the long run, Argentina's economic lifeline will undoubtedly be pinched by the United States.
The implementation of dollarization may alleviate its domestic difficulties in the short term, but in the long run, it will inevitably be interfered with by the dollar policy and hinder its own development.
For now, in Millais's eyes, resolving the crisis at this stage may be more important than thinking about how to develop in the future, and what Argentina needs is confidence at this stage.
