After winning the runoff, now President elect Javier Milei gave definitions about the dollarizationhis main economic proposal In bell.
The economist and future president spoke with the radio this Monday Continental, Miter and Rivadavia. There he indicated, among other things, that as of December 10, after taking office, he will promote a “state reform” and that he will try to “find a solution for the Leliq“. By the way, why will the latter be important for eventual dollarization?
Dollarize to close the Central Bank
“Close the central bank It is a moral slogan because for us stealing is wrong. Dollarizing is the currency in which you do it, but the central axis is to close the BCRA. Afterwards, the currency will be the one that Argentines freely choose,” said the economist. “Deep down you want to dollarize to get rid of the Central Bank”, he attacked.
Milei’s specific definition regarding his main campaign promise, in recent weeks, was that he was not talking about dollarization, but about a “free coin competition“. Also in that sense, he highlighted on more than one occasion that it was the people who decided to call it “dollarization” which demonstrated that the people were choosing that currency over the Argentine peso.
What will be the price of the dollar and what will happen to the stocks?
In this order, the President elect He stated that before lifting the stocks “We must fix the problem of leliqs“, since otherwise “you go to a hyperinflation“.
“We have a clear plan how to solve it, so in that sense we are confident and from there we will release the stocks also implies release the activityhe employment and that it begins to recompose the balance of the economy“, broad.
For this reason, he admitted that he will try to do it “as quickly as possible”, since in his opinion if the Leliqs problem that the Central Bank has is not resolved, “the shadow of hyperinflation will follow you at all times.” “It is a piece of clockwork and we have no room for error,” he considered.
When asked how much the price of the dollar In that case, the future president responded that the price will “determine the market“, although he added that first we must “correct stock imbalances because the dynamics of adjustment without correcting the stock imbalances can be lethal and lead to hyperinflation“.
In addition, Milei reiterated that he is willing to “apply the manual to the letter to fix the problems” and noted that the axes of his Government will be: “Small state committed to honoring commitments, respect for property rights, an open position towards the world on commercial terms“.
In parallel, the management of La Libertad Avanza will advance “with the fiscal adjustment“which – he indicated – “will not be paid by good Argentines but by politicians.”
“The central axis is in the design of the transition in such a way that the damage to society is minimized; he adjustment inexorably must be donethe big difference is that the political caste I always decided that the people would pay for it and We say that the political caste and its partners are going to have to pay for it.“he remarked.