this post was submitted on 25 Nov 2023
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[–] [email protected] 121 points 1 year ago (16 children)

Shuttering their central bank and converting to dollars... Meaning they aren't actually getting rid of a central bank, but are rather converting to a foreign central bank.

[–] [email protected] 37 points 1 year ago (7 children)

No it’s worse than that. How are they going to purchase enough dollars to replace their own currency? No one is going to give Argentina a loan to do this.

This project is doomed before it starts.

[–] [email protected] 10 points 1 year ago

You get dollars the same way anyone else would in the situation: You carry a trade surplus vs. the United States and then allow tax payments to be made in dollars. Prices settle as a function of dollars available, rate of circulation, and volume of goods & services available.

The policy should produce a boost in exports & employment but also produce a shortage of goods normally imported. It'll also be a great time for Americans to visit, the dollar suddenly having a lot more purchasing power in Argentina.

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