Argentina’s Economic Crisis: President Milei Considers Dollarization Amid Peso Collapse

President Javier Milei has revived discussions on dollarizing Argentina's economy, a cornerstone of his campaign platform. The proposal emerges as the Argentine peso collapses under the weight of hyperinflation, political instability, and eroding public confidence in domestic monetary policy.

Dollarization advocates argue adopting the US currency could provide immediate inflation relief and attract foreign investment. Ecuador and El Salvador offer mixed precedents—while dollarization stabilized prices, it also reduced monetary policy flexibility. Milei insists any transition WOULD require direct voter approval through a national referendum.

The peso's dramatic depreciation has created a currency crisis with few palatable solutions. Dollarization presents a radical but potentially expedient path to stability, though critics warn it could surrender economic sovereignty during turbulent times.