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Barca edge Real Madrid in extra-time to win wild Copa del Rey final
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'Legendary' Eubank Jr beats Benn in grudge bout
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Thunder sweep past Grizzlies into NBA playoffs 2nd round, Cavs on brink
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South Korea's Ryu and Japan's Saigo share LPGA Chevron lead
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Canada leaders make closing pitches in campaign upended by Trump
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De Bruyne's Man City exit 'so difficult' for Guardiola
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'No regrets' for Amorim over Man Utd move
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Lyon and Strasbourg win to close in on Europe, Montpellier relegated from Ligue 1
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Toulouse thrash Castres as Top 14 pursuers stumble
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Djokovic crashes to nervous Arnaldi in Madrid opener, Swiatek advances
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Olympic champs Russell, Davis-Woodhall win at Drake Relays
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Browns end Sanders long draft slide
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Cavs crush Heat, on brink of NBA playoff sweep
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Fire rages after major blast at Iran port kills 8, injures hundreds
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Kiwi Beamish wins Penn Relays 1,500m crown with late kick
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Mbappe on Real Madrid bench for Clasico Copa del Rey final
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England survive France fightback to seal Women's 6 Nations slam
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Palace sweep past Villa to reach FA Cup final
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CAF appoint Moroccan Lekjaa first vice-president
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Major blast at Iran port kills 5, injures hundreds
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Rodgers vows to stay with Celtic after fourth successive Scottish title
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Ipswich relegated as Newcastle, Chelsea boost top five bids
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Canada leaders make final pitches in campaign upended by Trump
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Mullins -- Ireland's national training treasure
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US, Iran say progress in 'positive' nuclear talks
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Mullins emulates O'Brien with second successive trainer's title
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Ipswich relegated after one season in Premier League
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Just Stop Oil activist group holds final march
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Djokovic crashes to nervous Arnaldi in Madrid opener
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Syria's Kurds demand 'democratic decentralised' Syria
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Leverkusen win to delay Bayern and Kane's title party
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Buenos Aires farewells native pontiff with tears and calls to action
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Turkey's opposition says Erdogan's canal plan behind latest arrests
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Maresca hails 'nasty' Chelsea as top five bid stays alive
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Trump raises Putin doubts after Zelensky talks at pope's funeral
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Major blast at Iran port kills 4, injures hundreds
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Napoleon's sword to be sold at auction in Paris
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Iran, US discuss nuclear deal in third round of talks
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Buenos Aires farewells native pontiff with call to action
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Warholm sets hurdles world record at Diamond League, Holloway shocked
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US students 'race' sperm in reproductive health stunt
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Wikileaks founder Assange joins crowds for pope funeral
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Leader Marc Marquez claims Spanish MotoGP sprint victory
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Celtic win fourth successive Scottish Premiership title
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Jackson ends drought as Chelsea boost top five push
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Warholm sets 300m hurdles world record in Diamond League opener
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Major blast at south Iran port kills 4, injures hundreds
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Russia says retook Kursk from Ukraine with North Korean help
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Francis laid to rest as 400,000 mourn pope 'with an open heart'
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Trump, Zelensky meet on sidelines of pope's funeral
Argentina, Milei and the US dollar?
Argentine economist and politician Javier Milei garnered significant attention with his proposal to dollarise Argentina’s economy. Renowned for his outspoken views, Milei argues that switching to the US dollar would tame the country’s runaway inflation and stabilise the monetary system. Yet, despite widespread debate, this radical measure has not been implemented. What factors are preventing a swift transition to the greenback?
Complex Economic Realities
One of the chief barriers to immediate dollarisation is Argentina’s chronic lack of sufficient foreign reserves. Converting an entire national currency into US dollars requires a robust stockpile of hard currency to back deposits and transactions. Argentina’s reserves, however, have been under persistent pressure due to debt obligations, trade imbalances, and capital flight—hardly an ideal foundation for a large-scale monetary overhaul.
Domestic Policy Constraints
Furthermore, the proposal faces a host of domestic policy challenges. Any government considering dollarisation must align its fiscal policies with the new currency regime. This includes placing strict limits on deficit spending and overhauling public expenditure practices. Argentina’s entrenched budget deficits and reliance on monetary financing complicate these reforms considerably. Even if Milei could muster enough political support, balancing the budget and enacting austerity measures would likely spark domestic unrest.
Institutional and Legal Hurdles
The Argentine Constitution does not explicitly prohibit the adoption of a foreign currency, yet the legal framework surrounding bank regulations, contracts, and state obligations complicates an abrupt switch. Existing debts, wages, and pensions—often denominated in pesos—would need to be recalculated. Moreover, securing approval from multiple layers of government, including Congress and provincial authorities, is no trivial task.
IMF Concerns and International Relations
Argentina’s longstanding relationship with the International Monetary Fund further complicates attempts at dollarisation. The IMF, which has extended substantial loans to Argentina, tends to advocate for stable monetary frameworks but is often wary of extreme measures that might undermine the viability of sovereign financial systems. Any plan to scrap the peso would likely invite further scrutiny from international lenders and bondholders.
The Road Ahead
While Javier Milei remains a vocal proponent of dollarisation, his vision must contend with Argentina’s political realities, economic constraints, and external obligations. Without broad consensus on budgetary discipline and robust foreign reserves, an abrupt adoption of the US dollar could prove disruptive. As a result, the push for dollarisation may be relegated to political rhetoric unless Argentina’s policymakers find the means and the will to enact deep structural changes.
Conclusion
For now, Milei’s ambition has not materialised, serving instead as a flashpoint in Argentina’s ongoing economic debate. Whether the country will one day fully embrace dollarisation remains an open question—one hinging on both domestic consensus and international confidence in Argentina’s financial and institutional stability.

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