Yes, Argentina can replace the peso with the US dollar

Steve Hanke and Matt Sekerke explain how dollarisation can succeed despite the BCRA’s limited reserves

The Central Bank of Argentina
The Central Bank of Argentina
Javier Pierini

Argentines gave up on their peso long ago. They now hold some $200 billion in cash, second only to the cash holdings of US citizens. With expectations for 186% inflation over the next 12 months adding insult to injury, it is little wonder that Argentines increasingly support presidential candidate Javier Milei, who has promised to dump the peso officially in favour of the US dollar. Once thought to be a longshot, Milei is now expected to garner the most votes in the October 22 general election.

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