Argentina’s Presidential Election: Dollarization dreams
- 05 October 2023 (7 min read)
Key points
• Three potential candidates will face off in Argentina’s Presidential elections on 22 October, against a backdrop of an ongoing economic turmoil
• Javier Milei of the libertarian La Libertad Avanza party leads the polls by a wide margin
• Milei’s proposals envision the full dollarization of Argentina’s economy, removing currency controls and shutting down the central bank
• Benefits of dollarization potentially include lower inflation and lower interest rates, encouraging more investment and boosting growth
• However, it can also act as a fiscal straitjacket, with a fully dollarized economy potentially more vulnerable to both real and financial shocks
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