“Dollarizing will prevent politicians from using the BCRA to finance themselves”

The economist Carlos Rodríguez joins the ranks of the national deputy and candidate for president Javier Milei (La Libertad Avanza). In a recent television interview, he defended the project of dollarization and closure of the Central Bank (BCRA) proposed by the libertarian politician.

“Argentine politicians have shown time and time again that as long as the Central Bank exists they will use it to finance politics,” Rodríguez said. He added: “Javier sees dollarization as a way that politicians cannot use the dollar to finance themselves, because they do not produce dollars, they produce pesos.”

Rodriguez explains the reason that leads to choosing the dollar over other currencies for this proposalif what you want is to get rid of the devalued Argentine peso:

In the case of Argentina, the circumstances are given so that dollarization is the fastest and most precise path, because Argentines have chosen to save in dollars. And they have 300 billion dollars in their mattresses, which is almost the equivalent of an annual GDP. It’s your savings. The Argentines have chosen the dollar as their currency, they are their illegal savings according to the penal tax law. They have them hidden for fear that the government will take them away.

Carlos Rodríguez, economist

Regarding such a situation, Milei’s adviser says that “something must be done. If we continue with the status quo as it is, the Argentines will continue with the dollars rotting in their mattresses.

The dollarization proposal is the subject of debate in Argentina and many express themselves with arguments for and against. For example, as CriptoNoticias reported on April 28, Deputy Martin Tetaz (Together for Change) considers that dollarizing Argentina is an impractical idea.

Worldwide, the macroeconomic context shows that there are several international blocs that are following the path contrary to Argentina and want to enter into a de-dollarization process.