The president of the Russian Federation, Vladimir Putin, referred to the political-economic situation in Argentina. In a press conference, the Slavic leader was consulted about the proposal to abandon the national currency and replace it with the US dollar that Javier Milei mentioned repeatedly during the election campaign.
“Everyone knows the idea of the newly elected president of Argentina to switch to the dollar internally. It is a decision, a sovereign decision of each country. But, first of all, Argentina has inflation, I think, around 143 percent. And, therefore, yes, there are many problems, this was told to me by previous leaders, related to the return of those borrowed funds that Argentina received from various sources,” the Eurasian president stated in the report.
In the statement, Putin stressed the importance of a country’s monetary sovereignty. A questioning of the elevation of the dollarized economic plan that a few months ago the libertarian presidential candidate announced as a government proposal. “The logic is understandable, but, of course, it represents a significant loss of sovereignty for the country. What would the peg to the dollar lead to? If there is a national currency, the peso, there is a tool with a little inflation. Yes, not very good, but it is still a tool to balance the situation between a healthy economy and compliance with social obligations,” highlighted the president from St. Petersburg.
Vladimir Putin’s television statements, against Milei’s “old” dollarization proposal, almost coincided in days with the inauguration of the libertarian president, who had the president of Ukraine as a star guest, Volodomir Zelensky. The armed conflict between both Eastern European nations is at a standstill, in a impasse that it is difficult to find a negotiated and peaceful solution.
“And if there is no national currency, nothing can be printed. There is only one way: reduce budget expenditures in the social sphere. Severe cuts in salaries, pensions and benefits, medical expenses, roads and internal security. There is no other way,” concluded the Russian president, positioning himself on the opposite side of his Argentine counterpart.
