The Wall Street Journal proposes to eliminate the weight

"The possibility that the Peronists retain power has caused the peso to flee by the Argentines, and on Monday the center-right government of Mauricio Macri imposed an exchange control. Here's a better idea: replace the peso with the US dollar as the legal currency of Argentina".

So begins the editorial that the Wall Street Journal published Thursday. In the, the specialized financial support proposes to Argentina "to eliminate the peso" and to follow the path of countries such as Panama, El Salvador and Ecuador, which, according to the newspaper, has successfully adopted the US dollar.

"The elections are taking place in October, but the victory during the primary of the left-wing populists Alberto Fernández and Cristina Kirchner in August triggered a monetary panic.The demand for dollars has risen, the peso has devalued 20% and the reserves of the Central Bank continue to fall, "explained the WSJ.

"Dollar demand suggests Macri could count on popular support to adopt the dollar as its national currency", said the media, adding that Macri could" become the leader who dared to defend the Argentine economies "in order to dollarize the Argentine economy.

"Argentine lawyers differ as to the legality of dollarization, but our sources believe that Macri could dollarize with the support of a majority of Congress, "insisted the WSJ.

"Panama has been using the dollar as legal tender since 1904, and El Salvador and Ecuador dollarized in 2000. Ecuador has done so to solve a banking crisis and El Salvador to lower the rate of interest." El Salvador and Panama today have the lowest indebted rates in America and longer durations.Ecateur has price stability that it does not have. Had not seen it for at least half a century, "the media said in the editorial.

Finally, the article considered the most common criticism of dollarization: "Argentina would lose the benefits of a central bank when printing its own currency"seigniorage", but it is a political excuse disguised as economy. "

"What is lost in seignorage will be more than compensated at the end of weight crises," he concluded.

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