ayakang31415 parent
Help me understand how the inflation has not slowed down in Argentina. I am looking at Argentina peso to usd chart over the past one year, and recent devaluation of peso is relatively flat compared to the declining rate a few months ago.
Milei has committed to dollarization, so at some point pesos are likely to be worthless. The government probably will (?) offer to exchange pesos for dollars but the government doesn’t have many dollars so their rate is likely to be terrible. He has removed many of the controls which were intended to protect the peso.
The government would need to borrow enough USD for the exchange. So it would need to convince lenders, not an easy task.
The entire process would also need to be secret, to preserve the value of the peso as much as possible.
He could also just go with a "soft dollarisation" in which USD is declared to be legal tender, alongside the peso–and then see what happens next.
From what I heard (from Argentines I know), a lot of Argentine professionals desire to be paid by their employers in USD not peso, but that is technically illegal (not to say it doesn't sometimes happen anyway). Making that completely legal could be a step towards increasing use of USD and reducing use of peso in the Argentine economy.