Argentina's Economy in Turmoil: Milei's Dollarization Plan Sparks Controversy and Devaluation

Argentina's new president, Javier Milei, has proposed scrapping the Argentine peso and adopting the U.S. dollar as the country's official currency. While dollarization has been implemented by other countries, economists warn that it could worsen inflation and lead to a decline in real wages. Milei faces challenges in enacting this plan, as he lacks a majority in Argentina's Congress and the country's banks may not have enough U.S. dollars on hand. Acquiring large amounts of dollars from organizations like the International Monetary Fund would be a major task for Argentina, which is already the IMF's biggest debtor.