Dollarization
The founding promise — and the one that didn't happen.
The promise
Milei’s signature economic proposal, repeated from 2021 through the 2023 campaign: abolish the peso, adopt the U.S. dollar, and “dynamite” the central bank (“el Banco Central es una máquina de generar pobreza”). The argument: Argentines already save in dollars; only the state forces them to use a melting currency. Dollarization would end inflation by removing the printing press.
The problem
Economists across the spectrum — sympathetic and hostile — noted the obstacle: dollarization requires dollars. Argentina’s central bank held negative net reserves; buying up the entire peso monetary base at a credible rate would need tens of billions the country didn’t have. Proposals circulated (a fund, a loan, a transition rate), but none was ever published as policy.
What happened instead
- The peso survived. The December 2023 devaluation reset it; it was never abolished.
- The government shifted language from dollarization to “currency competition” (competencia de monedas) — allowing dollars to circulate freely alongside pesos without formally replacing them.
- In April 2025, under the $20bn IMF program, most currency controls were dismantled and the peso floated within a 1,000–1,400 per dollar band — liberalization, not dollarization.
Where things stand (September 2026)
The central bank still exists. The peso still circulates. “Dynamiting” the BCRA is no longer on the near-term agenda; officials describe currency competition as the framework. Supporters call this pragmatism — the destination matters less than ending money-printing. Critics call it the quiet burial of the campaign’s central promise. Both readings are attributions.
The honest footnote
Full dollarization remains Milei’s stated philosophical preference, and he has not formally renounced it. But as a policy program it has been deferred indefinitely — one of the clearest gaps between the 2023 platform and the 2026 reality, recorded here without spin.
Source notes
- Campaign proposals: televised interviews and debates, 2021–2023.
- Policy evolution: Economy Ministry and BCRA announcements, December 2023–April 2025; IMF EFF documents.