Argentina economic crisis: Right-wing populist Milei wants to dollarise economy

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00:00 Abandoning the national currency and replacing it with dollars,

00:04 Ecuador has already done so 20 years ago.

00:07 While some may have questioned the move at first,

00:10 these days no one regrets the former currency, the Sucre.

00:15 It was the best solution for us.

00:20 At that time, Ecuador was in a bad economic situation

00:23 because we could no longer buy with the previous currency.

00:26 Everything was very expensive.

00:29 It was terrible.

00:30 There were constant devaluations, there was the crisis of 1999,

00:35 a lot of emigration, a lot of family pain.

00:38 After the dollarization, the process was long,

00:43 but it has been really good to have economic stability

00:46 and to improve the country.

00:48 This difficult transition is usual when a country changes its currency.

00:55 For Ecuador, it included hyperinflation.

00:58 The country's debt was multiplied by seven.

01:01 Other countries swapped their currency for the dollar,

01:05 including Zimbabwe, El Salvador and Panama,

01:08 a move that led to more investments from abroad.

01:11 Argentina would be the world's largest economy to adopt the U.S. dollar.

01:17 While the president-elect hopes that abandoning the Argentinian currency

01:22 would help rein in inflation,

01:25 200 economists have warned that the shift may lead to many other challenges,

01:31 price hikes and increased poverty.

01:34 Argentina will also lose its monetary sovereignty

01:38 and Argentinian companies could become more vulnerable.

01:42 companies could become more vulnerable.

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