A libertarian politician named Javier Milei won the Argentine primary elections with more than 30% of the vote, prompting analysts to offer their opinions on the dollarization strategies he has committed to implementing. In Argentina, the central bank would be eliminated as part of Milei’s government proposal, and the country’s democratic system would be scaled back.

Javier Milei Wins Argentine Primaries, Sparking Dollarization Talks

With more than 30% of the vote, libertarian presidential candidate Javier Milei prevailed in the primary elections held in Argentina on Sunday. The purpose of these elections is to choose the candidates for each political party, although observers and analysts might make predictions about the results of the next elections, which will take place on October 22.

Milei’s election has spurred discussion regarding his government plan, which includes shrinking the size of the state by eliminating numerous ministries and, most crucially, dollarizing the Argentine economy. Milei is regarded by many as a candidate with a far-right lean.

Experts Talk Dollarization

Politicians and analysts are debating the impact of dollarization on the Argentine economy in light of the results of the primaries. Due to the existence of non-disclosure agreements (NDAs), Milei stated in June that he had obtained the money necessary to dollarize Argentina. However, he did not reveal the names of the third parties engaged in the transaction.

The dollarization idea has drawn criticism from former economy minister Jorge Lenikov, who claimed that doing so would deprive Argentina of the means to implement its own monetary policy and force the U.S. Federal Reserve to do so instead.

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However, other people have also backed Milei’s plan. Another Argentine economist, Emilio Ocampo, views dollarization as the “second best” choice for the nation because he thinks it is impossible for Argentina to have an autonomous and capable central bank.

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