Argentina’s New President Wants to Adopt the U.S. Dollar as the National Currency
But Latin America’s third-largest economy is broke and lacks funds to swap the nearly worthless peso for the greenback
“To begin with, you need access to capital markets to convert the entire monetary base into dollars, and you don’t have them,”
On November 19th, Mr Milei surpassed expectations and won 56% of the vote
in the presidential run-off, compared with 44% for Sergio Massa, a stalwart of the Peronist movement, which has governed Argentina for 28 of the past 40 years.
His coalition, Liberty Advances, won in 20 of Argentina’s 23 provinces, plus the city of Buenos Aires. In his victory speech, Mr Milei promised to make “drastic changes” to end Argentina’s century-long decline and return the country to being a “world power” within 35 years.
Yet, despite what at first glance appears to be a clear mandate, the firebrand Mr Milei will not find governing easy. His coalition was only created two years ago. It commands the support of none of Argentina’s powerful governors, and will have only 38 of 257 seats in the lower house of Congress, and seven of 72 seats in the Senate.
Don’t Déjà Vu Me, Argentina.
Oh what a circus, oh what a show.