Argentina's President Floats Dollarization to Curb Inflation, But Faces Pushback Over Feasibility
• Argentina's new president, Javier Milei, wants to adopt the US dollar to curb high inflation, but economists say the government likely doesn't have enough reserves.
• Milei believes switching to the dollar would help fix the broken economy by breaking the cycle of printing money to pay debts.
• Ecuador, El Salvador and Panama already use the dollar and have lower inflation. But Argentina's economy is much bigger.
• Big business leaders and economists oppose the plan, warning it could spark economic crisis with the peso converted at a cut rate.
• The only way to dollarize with limited reserves may be a sharp devaluation, risking recession or default.