If converted to the blue-chip swap rate, Argentina would need an extra US$11.7 billion to “rescue” its monetary base. However, that doesn’t include liquidity bills — to buy back all of the Central Bank’s liabilities, Argentina would need US$43 billion. “If we assume that there is not going to be an extraordinary loan, then an ‘orderly’ dollarization is not possible,” the 1816 report said. “This would deepen the fall in income generated by the dollarization itself,” the report read. The alternative to dollarization is to implement a public policy agenda to strengthen the national currency.

Source: Bueno Aires Herald April 19, 2023 12:18 UTC