Argentina Inc doesn't want dollarization, business leaders say

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Corporate Argentina is strongly against full dollarization of the economy, one of the key proposals of presidential election frontrunner Javier Milei, according to 125 business people Reuters spoke to.

At a major corporate summit in the seaside city of Mar del Plata, Reuters asked business executives from a wide array of sectors whether they wanted the government to stick with the peso, change to a dual peso-dollar system or make a total switch to the dollar. Only two people backed full dollarization.

"We are left without an anchor to adjust monetary variables and the experiences in other countries have not been good." Rival candidate Sergio Massa, the ruling coalition's economy chief, supports sticking with the peso, but has struggled to bring down inflation or arrest depreciation. Most business people surveyed at the IDEA business summit said it was important to keep the peso to be able to adjust monetary variables and maintain competitiveness. A full switch to the dollar would mean losing monetary policy levers.

 

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