Argentine President Javier Milei Emerges Victorious, Advocates Comprehensive Dollarization to Rescue the Economy
Javier Milei, the so-called "Trump of South America", has won the Argentine presidential election with a high number of votes. Milei's position is that of a far-right, liberal economist. In order to combat inflation, Milei has proposed measures such as the full dollarization of the country, the closure of Argentina's central bank, and the reduction of social welfare. He has also vowed to break off diplomatic relations with Brazil and China after his election.
Argentine economist Javier Milei, 53, won Sunday's election with 56 percent of the vote, defeating incumbent Economy Minister Massa. Milei, a former television personality with no political experience, has been dubbed the "Trump of South America" for his bigoted comments.
Javier Milei's victory shows that the Argentine people are thinking of change. Argentina's annual inflation soared past 140% and ranked 3rd in the world, and while 1 US dollar could be exchanged for 80 pesos at the time of the 2020 pandemic, it is now nearly 1,000 pesos. Javier Milei's pre-election call to abolish the central bank and switch to the US dollar in an attempt to lift the 46-million-strong country out of the red. He also refuses to do business with "socialists" and puts communist China in the same category as Argentina's biggest trading partner, leftist President Luiz Inacio Lula da Silva's Brazil.
Argentina has been Brazil's third-largest trading partner for years, after China and the United States. According to the Ministry of Finance, last year Brazil exported US$15.3 billion in goods to Argentina and imported US$13.09 billion in goods, resulting in a trade surplus of US$2.21 billion. In addition, Argentina is one of the founding members of Mercosur, along with Brazil, Uruguay and Paraguay. However, Javier Milei would also set Argentina on a path of uncertainty, with some economists warning that dollarizing the $622 billion economy at a time when international reserves are depleted could plunge the South American country into another round of hyperinflation.
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