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Argentina can replace the peso with the dollar


Haziran, 14 2023
watermark Economic news

Argentine presidential candidate Javier Miley proposed replacing the national currency of the peso with the US dollar, hoping to limit the high inflation rate, which reached 109% in May. He believes that using the dollar can help to cope with the country's economic problems.


Miley, who is an economist and a libertarian congressman, plans to run for the presidential election in October. 


The politician justifies his idea of replacing the peso with the dollar by the fact that over the past year the peso has lost half of its value against the dollar, which has led to an increase in the cost of imports. Miley also pointed to the high level of the base interest rate, which is 97%.


Unlike some other emerging economies that seek to reduce dependence on the dollar, Argentina may be moving in the opposite direction, considering its introduction into circulation.


In addition to replacing the currency, Argentina also plans to increase the use of the Chinese yuan when importing goods from China and is making plans to launch a joint currency with Brazil.


However, despite these measures, Argentine consumers have long used US dollars in everyday transactions and as a form of savings accumulation. The country's previous attempts to control inflation have been unsuccessful.



    






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