❮ Return to Blog

Why Argentina’s New President Wants the U.S. Dollar

Why Argentina’s New President Wants the U.S. Dollar

Estimated reading time: 3 minutes

Presidential Plans

Argentina’s President-elect Javier Milei is no fan of the peso. He wants to ditch his nation’s currency for the U.S. dollar to leave economic upheaval behind. Milei also wants to strip Argentina’s central bank from its powers.

The South American country is no stranger to financial turmoil, having previously defaulted on its debt, and running triple digit inflation. So what could the good old greenback do?

Why Dollarization?

Switching to the U.S. dollar – a process known as dollarization – has historically helped certain countries achieve greater economic stability. Because local central banks aren’t able to print U.S. dollars, it can avoid hyperinflation, for example.

If Milei succeeds, Argentina would join Ecuador, El Salvador, and Panama in using the U.S. dollar.

Potential Pitfalls

While dollarization can be a step in the right direction, it’s not a panacea that will instantly cure Argentina’s economic struggles. 

For one, economists doubt that Argentina has the funds to actually complete such a project. Also, without the security of its own currency and central bank, Buenos Aires would be much more exposed to macroeconomic threats from swings in export prices and commodities.

Read more reporting here.

SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
The information and materials may contain hyperlinks to other websites, we are not responsible for the content of any linked sites. The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi HK. These links are provided for informational purposes and should not be viewed as an endorsement. The risk involved in using such hyperlinks shall be borne by the visitor and subject to any Terms of Use applicable to such access and use.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.


About SoFi Hong Kong

About SoFi Hong Kong

SoFi – Invest. Simple.


SoFi Hong Kong is the All-in-One Super App with stock trading, robo advisor and social features. Trade over 15,000 US and Hong Kong stocks in our SoFi App now.