Argentina Considers Dollarization as Peso Collapses

Argentina's President Javier Milei is advancing plans to dollarize the economy amid the peso's historic collapse. The radical proposal—a cornerstone of Milei's election campaign—aims to replace the failing local currency with the US dollar as the nation's sole legal tender.

The central bank has already burned nearly $1 billion this week defending the peso, but markets continue pushing the currency to record lows. Milei argues full dollarization could take four years, requiring banks to convert portfolios and rebuild payment infrastructure around USD.

While framing the MOVE as democratic—"I won't force it without public support"—Milei's upcoming US trip suggests urgent negotiations may be underway. The gambit reflects how traditional currencies are losing credibility globally as inflation ravages emerging markets.