The former director of the International Monetary Fund (IMF), Claudio Loser, opined that the organization would not endorse a dollarization in Argentina, as proposed by the candidate for president of La Libertad Avanza, Javier Milei, due to “the complexity of this monetary system for the size of the local economy”.
“I don’t think the IMF is a fervent supporter of the dollarizationbecause it is too complicated for an economy like Argentina’s,” said Loser, although he considered it more likely “a bi-monetary system like that of Peru”, but he was emphatic in stating that “not something like what happened in Ecuador”since the Fund is not going to want Argentina to have a fixed exchange rate.
The former official of the Multilateral Credit Organization affirmed that “from outside and from inside, the situation in Argentina looks completely dramatic,” and predicted that the government is facing reality, and “If they don’t do something important, they won’t make it to October and the IMF won’t help them either”.
Loser referred to the controversy that broke out last weekend over alleged suggestions by opposition economists for “the IMF to cut financing for the country.” In this sense, the former official confirmed the contacts, although he relativized the importance by explaining that “the representative of the Fund is in contact with many people, in addition to the government”.
The former director pointed out that “The fund’s relationship with Sergio Massa continues to be very good”and although he insisted on the Agency’s refusal to a system of dollarization of the economy, warned that “this exchange system It is already leading Argentina to ruin”.
