I presume USD was the unofficial currency for large/important transactions already.
All the rich and powerful people in Argentina weren't earning in pesos, that's for sure.
Argentina voted no on the Argentinian peso. USD could become its new currency
11–20 of 41 posts
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#12Just like el Salvador.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#13This title is very misleading. Actually Argentina voted in a presidential primary, and one candidate who advocates dollarisation got 31.57% of the vote. But the feasibility of dollarisation is not at all clear: https://www.economist.com/the-americas/2023/06/22/annual-inf...
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#14Title is misleading / totally incorrect. Should be "Far-Right Libertarian Wins Argentina’s Presidential Primary"
In short, a politician who wants to replace the dollar got 30% of the votes in the primary and will now contest the general election.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#15I find it interesting that countries give up on their own currently, with all the power it brings, to use an external currency. I guess the dollar is the best option as it’s easier to adopt than gold or whatever. Perhaps the euro, but I guess the dollar is more widely used. And the dollar is less manipulated than the Yuan. I guess the efficiency of not having to run a mint and the giving up on local corruptions and m…
Argentina has been having trouble with its currency for a while now.
Also, I question how much power it really gives in this case. Usage of USD is already large, and the government can't really control foreign exchange already.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#16This title is very misleading. Actually Argentina voted in a presidential primary, and one candidate who advocates dollarisation got 31.57% of the vote. But the feasibility of dollarisation is not at all clear: https://www.economist.com/the-americas/2023/06/22/annual-inf...
I came here to second that. They had the Paso now which isn't even the first round of actual elections.
This is an English article I could find about it: https://www.as-coa.org/articles/what-are-argentinas-paso-pre...
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#17After decades of uncontrollable inflation, I can see how relying on a foreign currency (one that is backed by the economically most powerful country) is attractive to the wider population looking for some sense of stability. But, without the ability to control the value of their own currency, how would it work for the government to manage their domestic affairs? Would they buy a boat load of USD, and circulate it wit…
>But, without the ability to control the value of their own currency, how would it work for the government to manage their domestic affairs?
The idea is that the stability the economy gains by using the US dollar, and the inability of the Argentine government to cause inflation by putting the currency printer on overdrive, benefit the country more than the loss of self-control from no longer having its own currency.
In Latin America, Panama, El Salvador, and Ecuador formally use the US dollar as their own currencies: They have also decided that the stability of the dollar (and ease of transactions with the US and Americans) is more important than controlling its own monetary policy. While Argentina has never before formally adopted the US dollar as its currency, a) the dollar has been the informal currency for many domestic transactions, as in many other countries in South America and elsewhere; bank loans and real estate are common examples. b) Argentina linked its currency to the US dollar on a 1:1 basis from 1992 to 2001. I suppose the electorate has decided that the country should not have abandoned the peg.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#18I find it interesting that countries give up on their own currently, with all the power it brings, to use an external currency. I guess the dollar is the best option as it’s easier to adopt than gold or whatever. Perhaps the euro, but I guess the dollar is more widely used. And the dollar is less manipulated than the Yuan. I guess the efficiency of not having to run a mint and the giving up on local corruptions and m…
Usually the governments don't have a choice.
The people simply decide not to use the local currency. And people generally care far more about stability, ease of movement and reasonably stable inflation over some control which they never experience directly.
And since this ends up being a parallel grey market that is outside the taxation and financial control systems it's better not to fight.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#19Title is misleading / totally incorrect. Should be "Far-Right Libertarian Wins Argentina’s Presidential Primary" In short, a politician who wants to replace the dollar got 30% of the votes in the primary and will now contest the general election.
I thought a far right libertarian would be pushing a crypto currency.
Re: Argentina voted no on the Argentinian peso. USD could become its new currency
#20I presume USD was the unofficial currency for large/important transactions already.
I would think so. In Uruguay, "As of August 2008 almost 60% of bank loans use United States dollars", Wikipedia says.