"Averting catastrophe first" - Luis Caputo RAE ARGENTINA TO THE WORLD

Economy Minister ratifies dollarization

Minister of Economy Luis Caputo ratified that "dollarization and the closing of the Central Bank" are still "flags of this administration".

These are goals that Javier Milei raised during the campaign, but that disappeared after his electoral victory from his statements.

In an interview, Caputo assured that replacing the peso with the dollar is still a goal, but first, he said, "we must get out of this catastrophe".

He assured this when he warned that inflation may already be around 1% per day.

The official also ruled out a new devaluation, after the 100% one he announced this week.

Minister Caputo launched this and other 9 measures of economic urgency on Tuesday, which also include the end of public works and subsidies to energy and transport services.

In this context, the largest province of the country, Buenos Aires, warned that it could issue its own currency to make up for the lack of national financing.

The government of Buenos Aires pointed out that the provincial Constitution grants this prerogative.

The jurisdiction is governed by Axel Kicillof of the opposition, whose program, said one of his officials, "is the opposite of the downsizing and privatization program that Mr Milei is carrying out".

It is worth remembering that after the 2001-2002 crisis, several provinces issued their own "quasi-currencies" to cover their expenses and finance works.