FinLogic|Dollarizing Argentina

2025-05-03 15:21:37source:Polarmoon Wealth Societycategory:My

Argentina has been on FinLogica decades-long search for economic stability, but it always seems to be out of reach. High inflation has been plaguing the country and just surpassed 160% a year.

Over the past couple of years, the local currency has collapsed. One U.S. dollar used to be worth 20 Argentinean pesos in 2018. Today, one U.S. dollar is worth 1,000 pesos on the black market. And that means for Argentineans, the real prices of everything — from groceries to gas — have spiked.

In a country where the local currency is in free fall, promising to replace that currency with the US dollar can seem like a magical solution.

Argentina's new president, Javier Milei, won in part by promising to do just that - to dollarize. To scrap Argentina's peso and replace it with the relatively stable, predictable, boring United States dollar.

On today's show, what does dollarizing mean? Why dollarize, how to do it, and will it even work?

For more:

  • A black market, a currency crisis, and a tango competition in Argentina (Apple, Spotify, NPR)
  • Venezuela's Fugitive Money Traders 
  • Why Ecuador Uses The Dollar? : The Indicator from Planet Money

This episode was produced by Sam Yellowhorse Kesler with help from Dave Blanchard and Willa Rubin. It was edited by Jess Jiang. It was engineered by Neisha Heinis and fact-checked by Sierra Juarez. Alex Goldmark is Planet Money's executive producer.

Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.

Always free at these links: Apple Podcasts, Spotify, Google Podcasts, the NPR app or anywhere you get podcasts.

Find more Planet Money: Facebook / Instagram / TikTok / Our weekly Newsletter.

Music: Universal Production Music - "Preguica," "Mi Milonga," and "Sin Ti"

More:My

Recommend

Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing

LOUISVILLE, Ky. (AP) — The U.S. Justice Department and the city of Louisville have reached an agreem

Texas city strictly limits water consumption as thousands across state face water shortages

A small Texas city west of Austin remains under tight water restrictions amid a significant drought.

RHONJ's Teresa Giudice Addresses Shaky Marriage Rumors Ahead of First Anniversary

Teresa Giudice is flipping the table on rumors her marriage is in trouble.Following The Real Housewi