New Libertarian President Faces Uphill Battle to Stabilize Crumbling Argentine Economy
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Argentina has suffered from years of economic turmoil, with high inflation and a crashing currency. This catalyzed the election of libertarian president Javier Milei.
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Milei wants to "dollarize" Argentina's economy by replacing the peso with the US dollar as the official currency. However, economists say this will be very difficult.
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Many Argentines already rely on US dollars, with an estimated $200 billion in cash savings. Dollars are seen as more stable and are used to buy houses, cars, etc.
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The plunging peso has devastated wages and savings. Prices rise extremely fast, making it hard for businesses to stay afloat and consumers to purchase goods.
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Argentines hope Milei can fix the economy, but expect more hardship ahead during the transition period. Businesses are struggling to operate in the unstable conditions.