From Rome, President Javier Milei assured that he is "nothing away" from being able to dollarize the economy, he calculated that he has "87.5%" reserves to do so but assured that it may take a little longer than 2024.
"We are getting closer to being able to dollarize. We have accumulated 7,000 million dollars of Reserves and the monetary base is 7,500, put 8,000 million dollars, that is, we are nowhere near," said Milei in dialogue with the program "Sábado más tempranísimo"
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After that statement, Javier Milei was asked if it could be during 2024 and answered: "It requires a little more time because reforms must be made in the financial system to make it suitable for a dollarized system. But we are very close. If the monetary base is 8,000 million dollars and we have 7,000 million dollars of reserves, which means that we are at 87.5% if I'm not mistaken."
On the other hand, the president referred to inflation: "Specific issues may occur that temporarily affect a jump in prices, but if we continue along this path in which we have fiscal balance..."
However, he cut off his explanation to make a parenthesis about his Government's monetary issuance: "It is very interesting that you notice it. We issue money to buy dollars, we still have the problem of endogenous issuance by the financial system, which is what we are doing with the sanitation of the Central Bank and yet the monetary base does not move because we contract through the treasury and through Bopreal (Bond for the Reconstruction of a Free Argentina)".
"This is very important because the monetary base in pesos remains the same but the dollars that support it are increasingly larger. This shows how we are cleaning up the balance sheet of the Central Bank and the more healthy the balance sheet of the Central Bank is, the level of underlying prices of the economy are lower, therefore the inflation rate decreases," he highlighted.
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