Argentina's presidential candidate is already setting things in motion to dollarize the economy by rebuilding reserves
- Argentina's presidential candidate Javier Milei is already kicking off efforts to dollarize the economy, per Bloomberg.
- Milei is looking to borrow dollars from international investment funds to replenish the country's reserves.
For some time now, Argentine presidential candidate Javier Milei has championed the idea of the South American nation adopting the US dollar as its currency. He is already setting things in motion to make that happen.
Milei has kickstarted talks with foreign investment funds to borrow dollars in a bid to boost the country's reserves, according to a Bloomberg report that cited an economic adviser to the politician.
"People will be able to use the dollars saved under their mattresses," Milei told reporters at a event on Wednesday, per Bloomberg. His advisor Diana Mondino added that padding out dollar reserves would help improve Argentina's solvency before it ditches the troubled peso.
Talk about Argentina adopting the greenback as its key tender has been heating up as a collapse in the peso has worsened the nation's hyperinflation and debt problems. The dollar has surged some 240% against the peso since the end of 2021. Annual inflation in the South American nation measured 113%, according to the most recent data.
Milei and economists including Steve Hanke, professor of applied economics at The Johns Hopkins University, have advocated the use of the dollar as a way for Argentina to stop the "death spiral" crushing the economy.
Meanwhile, some other experts like Robin Brooks, chief economist at the Institute of International Finance, have opposed the idea.
Milei added that he would turn to the International Monetary Fund for more dollars given the extent of the country's debt pile.