Argentina Ditches Peso for US Dollar: BRICS Crypto Impact

• Argentina Plans to Adopt US Dollar as New President Takes Office
• A Shift in Argentina's Economic Trajectory
• Dollarization: Argentina's Strategy for Economic Revival
• An Anticipated Rejection of BRICS Invitation
• Milei's Criticism of the Peso
• Argentinian Inflation Soars

Argentina Plans to Adopt US Dollar as New President Takes Office

Argentina, a potential invitee to the BRICS, is preparing to replace its national currency, the peso, with the US dollar. The incoming President, Javier Milei, has been explicit about his plans for a dollar-driven economy. This transition, commonly known as dollarization, is expected to take place under his leadership. Interestingly, Argentina's participation in the BRICS expansion plan, which was announced at the 2023 summit, may now be in question following Milei's win.

A Shift in Argentina's Economic Trajectory

Over the past year, Argentina has grappled with a struggling economy, which led to a quest for new leadership in the recent presidential elections. These elections resulted in a change of guard, with the economically radical Javier Milei ready to take office. His ascension to presidency significantly changes Argentina's path ahead.

Dollarization: Argentina's Strategy for Economic Revival

Despite being a contender in the BRICS expansion plans, Argentina is on the brink of replacing its peso with the US dollar. Milei has been vocal about his views on the Argentinian currency and the role of the central bank. He has openly advocated for dollarization, suggesting that the move towards a dollar-based economy is imminent under his administration.

An Anticipated Rejection of BRICS Invitation

Although his plans have been met with resistance from various economists, Milei's election win suggests a general consensus among Argentinians. In addition, his stance on BRICS indicates a probable rejection of the proposed invitation. Given his focus on dollarization, it seems Argentina and the BRICS alliance may be heading in opposite directions.

Milei's Criticism of the Peso

Milei has been candid in his criticism of the peso. He described it as a repugnant paper that is not even worth excrement because it is issued by Argentine politicians. He further argued that with the increase in purchasing power through dollarization, people could save more.

Argentinian Inflation Soars

In a related development, Argentina's inflation rate has shot up to 143%, adding urgency to the need for economic reforms.

Edited by Jonathan Stoker