It’s not even time to leave yet and it’s already in reverse, or at least it seems that way. Furthermore, to perhaps the most crucial point of the program of Javier Milei, the newly elected Argentine president, who has placed a strong focus on the dollarization of the country, essentially the use of the dollar as the national currency instead of the ailing peso. According to what he writes […]
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It’s not even time to leave yet and it’s already in reverse, or at least it seems that way. Furthermore, to perhaps the most qualifying point of the program Javier Mileinewly elected Argentine president who has focused heavily on this dollarization of the country, essentially the use of the dollar as the national currency the burden of suffering. According to the British newspaper “Financial Times”, the economist and former banker Emilio Ocampo he rejected the position of central bank governor proposed to him by Milei a Cause of the differences that are looming with the president. And Ocampo is the ideologue of Dollarization, author of the project on which the newly elected election program was based. However, a source close to Ocampo confirmed that he would no longer take the job. “The only reason Ocampo was at the central bank was for dollarization,” the source said. For now, the new president gave no indication of a possible alternative choice for the leadership of the central bank, but the Argentine media is betting on the mathematical physicist with a career in finance Demian Reidel, an “ex” of Mauricio Macri.
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Milei, the Financial Times recalls, declared during the election campaign that Ocampo would become head of the party Central bank with the task of closing them, In addition, the dollarization of the economy and the Bank closures “were non-negotiable”. This last point was reiterated today, but it is unlikely to be implemented if we continue to have a national currency.
Last Wednesday, Milei instead praised the former central bank president Luis Caputo knowing he would have the skills to be next Minister of Economic Affairs the government. Caputo also served as finance minister at the start of the former president’s administration Macri, as it renegotiated a roughly $16.5 billion deal with recalcitrant bondholders to return to international markets. The dollar is currently trading on the black market at around 1,020 pesos, almost that three times the official rate from 364 to a dollar. The extreme practical difficulty of implementing a dollarization plan was highlighted in an interview with Ilfattoquotidiano.it by Argentine economist Mariano Féliz, who stated, among other things, that the country does not have enough American currency.