dollarization

  For decades, the petrodollar has been the cornerstone of American global hegemony. By ensuring that the world’s most essential commodity, crude oil, was priced and traded exclusively in United States dollars, the U.S. secured a perpetual global demand for its currency. This arrangement allowed Washington to run significant deficits and wield sanctions as a […]

  A few weeks ago, Argentina slid into another currency crisis. In what appeared to be a desperate move, the Argentine government reached out to the U.S. Treasury, seeking assistance from its Exchange Stabilization Fund (ESF)—the same fund famously used to help Mexico during the Tequila Crisis in the mid-1990s. Argentina hasn’t received a single […]

  “Tell me you don’t know how to dollarize without telling me you don’t know how to dollarize” should be the tagline for Argentine Economic Minister Luis Caputo’s recent statement confirming that dollarization has been discarded (if it was ever seriously on the table). In a recent interview with Luis Major at LN+, Caputo was asked directly […]

  On the campaign trail, now-President Javier Milei promised to replace Argentina’s peso with the US dollar. But, at least so far, he has failed to deliver on that promise. Instead, Milei has implemented a transition plan with the expectation of eventually establishing a more permanent monetary system, which might be something less than full-scale […]

  In a significant legislative move, Argentine President Javier Milei has successfully passed his omnibus law, known as “Ley Bases.” This marks a crucial milestone in his administration as he transitions into the second phase of his government. Central to this phase is a new monetary regime, which was a major promise of his presidential […]