Argentina’s President Javier Milei, who is known for being pro-Bitcoin BTC/USD has attributed the country’s slow transition to the U.S. dollar to the corrupt practices of its politicians and economists.
What Happened: Milei, who took office in December 2023, has been advocating for the dollarization of Argentina’s economy. However, in an interview with Bloomberg on Friday, he said that the political climate in the country has hindered this process.
Milei said that his plan to exchange the central bank’s liabilities for dollars could have led to his impeachment. He went on to describe the central bank’s financial situation as “bankrupt” and facing a “fiscal, monetary, and currency disaster of extravagant proportions.”
Embracing the greenback was crucial for Milei’s strategy aimed at revitalizing Argentina’s economy and improving the central bank’s financial standing. Milei expressed to Bloomberg that his approach of trading the central bank’s obligations for dollars on the market would have been flawless if not for the contentious political climate within the country.
Milei said, “It would have been a highly successful approach and we would have been in the position to do that. But given the structure of Argentina’s political system, and considering how intellectually dishonest politicians and economists are in Argentina, it’s very likely that if we had actually engaged in that sort of transaction … politics probably would have said that was fraud,” adding, “They probably would have accused us of some monkey, shady business and would have sent us to prison.”
Why It Matters: Milei’s presidency has been marked by a series of bold economic reforms. He has been a vocal advocate for Bitcoin and has implemented radical austerity measures without legislative approval. His administration has also been in discussions with the International Monetary Fund or IMF for a new program, leading to a surge in Argentine stocks.
However, Argentina’s political and corporate arenas have been plagued by corruption for years. During his presidential campaign, Milei had emphasized the need to combat corruption and reform the Argentine economy although he did acknowledge that this process would be gradual, reported Markets Insider.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Javier Milei Image Via Wikimedia Commons
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