Tuesday, April 16, 2024

ECONOMY | 15-02-2024 16:55

Milei says Argentina has '85.7% chance of being able to dollarise’

Argentina’s libertarian leader claims that neither zero deficit or the shuttering of the Central Bank is up for negotiation and that there is a good chance of dollarisation “at market rate.”

President Javier Milei anticipates that he is near materialising his idea of long-held aim of dollarisation, claiming that Argentina has an “85.7 percent chance” of being able to finalise the process.

However, the La Libertad Avanza leader said that his government still needs to “clean up” the balance of the Central Bank and encourage financial reform prior to the adoption of the greenback as Argentina’s official currency.

“We have an 85.7 percent chance of being able to dollarise. If we finish cleaning up financial assets and complete the instant reform of the financial system instantly, we could already dollarise but because it’s not instant we cannot,” insisted the head of state in a radio interview.

He revealed that, the government estimates that it will clean up the balance of the Central Bank by midyear.

“Dollarisation is always at a market rate. When you dollarise, you’re left without a monetary policy, that’s why you have to adapt the financial system because ultimately you have no lender,” he underlined.

In another section of the interview, the president suggested that high inflationary levels respond to money-printing.

“The effect on prices takes 18 months and back then Kirchnerism was around. This loss of purchasing-power is not my fault, I’m just here to correct it,” he said in his defence.



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