Milei outlines his dollarization plan, which will include other currencies

“At some point there will be so many dollars in the economy that we may be able to close the central bank that day,” Milei explained.

During his appearance at Expo Real Estate on Thursday, Argentine President Javier Milei outlined his plan for currency competition and also addressed the closure of the Central Bank, one of his main electoral promises. The head of state also stressed that, thanks to the economic adjustment implemented by his government, debt restructuring is guaranteed for part of 2025.

Milei has transformed his campaign promise to “dollarize” the Argentine economy into a “currency competition.” The plan envisages the coexistence of the peso, the U.S. dollar and other currencies, responding to widespread concerns among economists about the impact of restricting money issuance in a scenario of economic growth.

“We will allow currencies to compete. Since there will no longer be currency barriers, we will allow Argentines to carry out their transactions in other currencies,” Milei explained.

Under his plan, every dollar that comes into the system can be used directly for transactions, eliminating the need to spend money to buy them. “For the sake of simplicity, I say dollars when I talk about currency competition,” he added, meaning that the same would apply to the euro, pound or any other currency.

As economic activity increases, it will be the Argentines themselves who monetize the economy by bringing more dollars into the country. “At some point there will be so many dollars in the economy that maybe one day we can close the Central Bank. And if I am still in government that day, I have no doubt that I will close it,” he stressed.

Regarding the economic adjustments implemented by his government, Milei explained that “they were not 5 percentage points, but equivalent to 7 percentage points of GDP.” He added that thanks to the spending cuts implemented, the government will absorb “an additional 9 billion pesos” by the end of the year, which will allow Argentina to cover part of next year’s public debt.