Massa warns about the risks of dollarization in Argentina proposed by Milei

The Minister of Economy of Argentina and presidential candidate Sergio Massawarned this Thursday about the risks of the dollarization proposed by the libertarian aspirant javier milei and promised to go towards a “exchange simplification” if you arrive at the Casa Rosada on December 10.

“I feel that the country is at stake and that we have to choose if we live in a society that coexists, develops and includes or if we go to the law of the jungle”, affirmed Massa when speaking at the twentieth edition of the Council of the Americas in Buenos Aires, organized by Americas Society/Council of the Americas (AS/COA) in association with the Argentine Chamber of Commerce and Services (ACC).

LOOK HERE: Breaking relations with Brazil and China, Milei’s most recent controversy (and the effects it would have on Argentina)

In front of an audience of businessmen and a recent arrival from ParaguayanMassa questioned the proposal of Milei, the candidate with the most votes in the primaries on August 13, to dollarize the economy and close the central bankbefore redeeming its liabilities through debt bonds.

The minister said that dollarizing without having enough export currencies is not viable, let alone “breaking” relations with China and Brazilmain trading partners of Argentina.

He warned businessmen that dollarization and the break with strategic trading partners will imply the “destruction” of the capital of the companies, including the human capital that “he is going to leave Argentina” if their wages are degraded.

Exchange simplification

Massa, Economy Minister since July 2022, stated that “not easy to manage” in “a size crisis” that Argentina has to face, a “structural crisis of over-indebtedness” exacerbated by a crisis “circumstantial” derived from the drought that in recent months hit agriculture, Argentina’s main source of foreign exchange earnings.

Regarding the twenty exchange rates that coexist in Argentina, an economy with severe imbalances, including meager monetary reserves, Massa assured that he does not like this multiplicity.

MORE INFORMATION: Javier Milei assures that if he is elected president, Macri will be part of his government

He promised to go to aexchange simplification” and maintain a competitive official exchange rate, seeking fiscal order and a trade surplus, which, he assured, will recover in 2024 thanks to higher exports from the agro-industrial sector, but also from mining and hydrocarbons.

“The recovery of the agro-industrial sector will allow us to have better solvency and greater peace of mind in terms of accumulation of reserves and greater strength in terms of recovery of our currency.“, held.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.