During his presentation at the Expo Real Estatethe economist resumed the discussion on two of his main campaign promises: the “dollarization” of the Argentine economy, renamed “free currency competition”and the elimination of the Argentine monetary authority.
To elaborate on both topics, he first referred to a common concern among economists: the effects that could be generated by restriction on the issuance of money carried out by his government, in a possible scenario of economic growth.
Currency competition, the role of the dollar and the closure of the BCRA, according to Javier Milei
According to him, the combination of both variables could lead to deflation or depression, if it is not “attacked” with another tool. In light of this, he pointed out that one of the most frequently asked questions is “How do we monetize the economy if the amount of money is fixed?”, and he responded: “With the competition of currencies.”
“What we’re going to do is that Let the coins start competing. We will allow Argentines, since the currency controls will no longer exist, to make their transactions in other currencies. So those dollars that enter the system, instead of issuing money to buy them, They will be able to be used to make transactions“, he added.
As activity grows, the President assured that it will be the Argentines themselves who will monetize the economy. “bringing more dollars into the economy.” “I say dollars to simplify when I say currency competition,” he stressed.
“At some point there will be so many dollars in the economy that Maybe that day we can close the Central Bank. And that day, if I continue to be in the Government, have no doubt that I will close it,” emphasized the economist, who raised the “dollarization” as one of his campaign proposals in 2023.
Milei assured that he has already “guaranteed the rollover of the debt for part of 2025”
Within the framework of the Expo Real Estate which is carried out in the hotel Hilton, The head of state reviewed the current economic situation in the country and gave figures for the adjustment he is carrying out: “It did not end up being 5 points, but rather It was the equivalent of 7 points of GDP“.
He also said that, due to the restructuring of public accounts and the cuts implemented in the State, the Government will have to pay a total of 100 million pesos between now and the end of the year. will absorb “9 billion additional pesos” which will allow it to deal with next year’s public debt: “We have already guaranteed the rollover of the debt for part of 2025.”
Source: Ambito
