Former Trump Official and Argentine Economist Urge Dollarization to Save Argentina's Economy

At an event organized by the liberal think tank Cato Institute, former World Bank President David Malpass and Argentine economist Emilio Ocampo strongly advocated for the full dollarization of Argentina's economy. Malpass, who served under Donald Trump, argued that eliminating the Argentine peso is crucial to restoring investor confidence and attracting massive capital inflows. He claimed that 90% of Argentina's economic deterioration stems from the existence of the local currency, asserting that formal dollarization would trigger an immediate surge in investment without requiring significant prior reserves. Emilio Ocampo, a former advisor to President Javier Milei, supported this view by highlighting the success of dollarized economies like Ecuador and Panama. He noted that Argentines already hold significantly more dollars than pesos, indicating a de facto preference for the US currency. Ocampo criticized the current system as inefficient and stagnant, arguing that dollarization would provide long-term credibility and protect citizens' wealth from political interference. Although dollarization was a central promise in Milei's 2023 campaign, it was later discarded by his administration. The speakers contended that international institutions resist dollarization because they benefit from the current monetary order.