Currently facing inflation rates of 113% and a heated presidential race, the people of Argentina have some serious decisions to make in order to attempt to stabilize their economy. Javier Milei has thrust himself into the presidential race lead as his unconventional practices and bold policies have caused a division amongst the Argentine people. The libertarian radical has said that he wants to get rid of the central bank and dollarize the economy. Countries like Venezuela, El Salvador, Panama, and even Argentina in 1991 have undergone dollarization, with the goal of dollarization being to create stability throughout the economy while still keeping administrative roles within the country itself.
Many Argentine people are against this practice because there is fear of losing their economic independence and becoming too reliant on the United States. Whether you support Milei or not, the Argentine people have recognized that the peso may be on its way out and have begun exchanging their pesos for dollars. In 2022, 2,000 pesos could get you $10, but now with inflation as high as it is, you will only receive around $2.70. The streets of Buenos Aires have also begun reflecting the potential switch to the dollar with signs showing store prices in dollars.
With an October election looming large, the people of Argentina are left with a decision that has the ability change the economic landscape of their country. The younger population of Argentina continues their support for dollarization as they search to find a solution to their future, but many opponents to dollarization were alive in 1991 when Argentina first tried dollarization. This came to an abrupt end as Argentina faced another economic crisis, and the run on the peso created riots. As the divide between pro-dollarization Argentine's and anti-dollarization grows, the underlying issue of all-time high inflation looms large.
