When asked about his dollarization platform, Miley said the priority is “to close the central bank, then the currency will be one Argentina will freely choose.”
Miley will take office on December 10, inheriting a country whose treasury is in danger, with his incoming government facing a $44 billion debt to the International Monetary Fund.
IMF Managing Director Kristalina Georgieva congratulated Miley and said she looked forward to working with him “to develop and implement a strong plan to safeguard macroeconomic stability and strengthen inclusive growth for all Argentines.” Looking forward to.
Monday is a public holiday, meaning Miley’s win will have a late impact on the volatile peso.
Argentina has tightly controlled the peso’s exchange rate and access to the dollar in recent years, allowing a black market for the greenback to flourish.
This so-called “blue dollar” is worth almost three times the exchange official rate, and analysts warn that the peso is set for a sharp devaluation.
Asked whether he would lift restrictions on foreign currency purchases that have been in place since 2019, Miley said, “It’s no alternative to maintaining a trap that has stifled the economy.”
Reactions poured in for the new leader of Latin America’s third-largest economy, including congratulations from Brazil and China — with which he had already vowed to cut ties, saying “We don’t deal with communists “