Rodríguez explains that Argentines have already chosen the dollar as their savings currency.
That’s why he says dollarization is the quickest way to end inflation.
Economist Carlos Rodríguez joins national MP and presidential candidate Javier Milei (La Libertad Avanza). In a recent television interview, he defended the libertarian politician’s proposed dollarization and central bank shutdown (BCRA) project.
“Argentinian politicians have shown time and time again that as long as the central bank exists, they will use it to fund policies,” called Rodriguez. He added: “Javier sees dollarization as a way that politicians can’t use the dollar to finance themselves because they don’t produce dollars, they produce pesos.”
Rodriguez explains The reason that leads to the preference of the dollar over other currencies for this proposalif you want to get rid of the devalued Argentine peso:
In the case of Argentina, the circumstances are such that dollarization is the quickest and most accurate way, since Argentines have chosen to save in dollars. And they have $300 billion in their mattresses, which is almost an annual GDP. It’s your savings. The Argentines have chosen the dollar as their currency, which according to the Penal Tax Act is their illegal savings. They hid them for fear the government might take them away.
Carlos Rodríguez, economist
In such a situation, Milei’s advisor says: “Something has to be done. If we continue with the status quo as it is, Argentines’ dollars will continue to rot in their mattresses.
The dollarization proposal is the subject of debate in Argentina and many come forward with arguments for and against. For example, as CriptoNoticias reported on April 28, MP Martin Tetaz (Together for Change) considers Argentina’s dollarization an impractical idea.
Globally, the macroeconomic context shows that there are several international blocs that want to go the opposite way to Argentina and embark on a de-dollarization process.