"Argentina's President Considers Dollar Adoption: Implications for Black Market Currency Traders"

Argentina's newly elected libertarian president, Javier Milei, plans to adopt the US dollar as the national currency and close the central bank. However, implementing dollarization would face challenges, including the need for approval from a divided congress and potential constitutional issues. Economists argue that without its own currency, Argentina would lack flexibility to deal with external shocks. Additionally, the country's lack of access to capital markets poses a hurdle to carrying out such an ambitious proposal. Critics also question the feasibility of dollarization given Argentina's high external debt. Nevertheless, proponents argue that dollarization could provide stability and prevent hyperinflation, as private sector actors already hold significant amounts of dollars.