Campaign promise from the current president, adoption of the dollar as currency in Argentina will be delayed until 2025

Argentine President Javier Milei said he is ruling out a dollarization of the economy before next year’s legislative elections, in the first indication of a timetable for his most ambitious campaign proposal.

“I don’t think we will get there before next year’s legislative elections, but the objective continues to exist,” Milei told CNN en Espanol in an interview that aired on Sunday night.

Milei had already said that dollarization would only come after his government cleaned up the central bank’s balance sheet and reformed the country’s financial system, without giving any dates.

The Argentine president added that he is working on a reform of the financial system that will serve as a fundamental step towards the eventual closure of the central bank, another component of his campaign’s economic plan.

He did not give details about the reform, nor did he say when it would take place, but he confirmed his vision of closing the monetary authority at some point.

“We can make all the reforms we want, but if we let the central bank live, sooner or later, criminal politicians will use it to rob the people,” said Milei.

The libertarian president criticized politicians for “grossly and violently” robbing citizens, referring to the idea that the central bank’s unbridled issuance of money has put Argentine inflation among the highest in the world.

Colombia and Argentina released a joint statement on Sunday night that they held talks to “overcome any differences” and that Argentine Foreign Minister Diana Mondino would visit Bogotá soon.

Management

When asked what his government’s greatest achievement was in the first 100 days of his administration, Milei highlighted having “avoided hyperinflation” in Argentina.

In February, inflation in the country grew 13.2%, reaching 276.2% in 12 months — the highest in the world. Despite the increase, the result showed a deceleration in prices compared to January, when inflation rose 20.6%.

The Central Bank of Argentina, one day before the release of the country’s inflation, chose to reduce the basic interest rate from 100% to 80% per year, citing that “since December 10, 2023, the economic situation has shown visible signs of reduction of macroeconomic uncertainty”, in addition to recording a “declining trajectory in retail inflation”.

Regarding the future, in addition to plans for reforming the financial system, closing the BC and eventual dollarization, Milei also highlighted the objective of maintaining commercial alignment with the United States.

The president has publicly declared numerous times his support and personal appreciation for former American president Donald Trump, who is running for re-election in the country in 2024. However, even if current president Joe Biden wins the race for the White House, Milei said that This will not be a problem and it will maintain a good relationship with the country.

“Regardless of who is in charge, and beyond my preferences, which are public, my priority is to be an ally of the United States,” he commented. The information comes from the Bloomberg news agency and the G1 news portal.