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Javier Milei ruled out dollarizing the economy this year

Javier Milei ruled out dollarizing the economy this year

In statements with journalist Iván Schargrodsky, the libertarian president analyzed the possible dollarization in advance of his international tour in Israel and Italy: “They don’t give the times. Think that if we maintained the current pace of sanitation of the BCRA it would only be clean at the end of June“.

“Adapt the financial system model can be on the floor for a year. The only advantage is that the size of the system is so small that it could be done faster,” he expressed for the journalist’s newsletter in Zenithal.

Asked if the model that seeks to change the official currency remains intact in the ideology of the current Executive Branch, Milei explained: “Dollarization (strictly speaking, the free competition of currencies) It is the final step of an entire process that begins with the sanitation of the BCRA, to then advance in the reform of the financial system and then in the end it is liquidated. “That reform is to create an anti-run bank, and once that anti-run reform is done, you can move on to a free banking system.”

“You can settle the BCRA in any currency, although the simplest thing is to do it in dollars. However, this does not mean that individuals use the dollar as currency. For example, an oil tanker is likely to use the WTI; someone in gas will use BTU; in the field, Chicago Soybeans. The result is a currency basket where the weights are freely determined by individuals, which neutralizes you from the effects of the monetary policy of a particular country,” he added.

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Javier Milei reiterated the importance of dollarization but ruled it out for this year: “There is no time.”

Javier Milei, dollarization and the experience in Ecuador

The president, in the same interview, acknowledged future meetings with the material authors of dollarization in Ecuador. “Those who made dollarization in Ecuador They are sending me a report because they believe that we could do it now. I’ll see you when I get back from the trip,” she noted.

Along the same lines, the libertarian warned that “strictly speaking, The case of Ecuador has been very successful. That there are people who are intellectually dishonest or ignorant in monetary terms does not take away from the achievements of the case, even when, from my point of view, it could be done better. “It is very stupid that Correa wants to blame the fiscal blunders on dollarization.”

What does Luis Caputo think about dollarization?

Ten days ago, the Minister of Economy, Luis “Toto” Caputo, ratified this monetary policy by maintaining that: “It is a goal of this Government and it will be done when the conditions are right.”

This happened during a press conference held at the Casa Rosada in which the official announced that the fiscal chapter of the omnibus law is being withdrawn to “facilitate and accelerate” the approval of the rest

Source: Ambito

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