Milei Compares Argentine Peso to Excrement
The Argentine peso has experienced a significant drop in value after presidential candidate Javier Milei criticized the currency, likening it to excrement. Milei, who is predicted to win the upcoming elections, advised citizens against investing their savings in peso-based fixed-term instruments and instead encouraged them to save in dollars during a radio interview.
During the interview, Milei made the following statement:
The peso is the currency issued by the Argentine politician and therefore cannot even be worth excrement, because that garbage is not even useful for fertilizer.
Following Milei’s remarks, the Argentine peso plummeted to 1,050 pesos per dollar, surpassing the 1,000-peso-per-dollar threshold for the first time in the country’s history.
Milei has proposed dollarizing the Argentine economy and eliminating the Central Bank of Argentina as part of his government plan. He explained that if dollar prices continue to rise, these actions would become easier to implement:
The higher the price of the dollar, the easier it is to dollarize. Eliminating the Central [Bank] is an immovable policy because we believe that there is a moral issue, that stealing is wrong.
Bank Run Legal Complaints
President Alberto Fernandez has filed a legal complaint against Milei on charges of public intimidation. Fernandez accuses Milei of causing a public disturbance that led Argentines to withdraw their peso savings and exchange them for dollars. The complaint emphasizes that after Milei’s statements, the population “feared that our currency, the peso, would lose its value and no longer serve as our monetary unit.”
Attorney Valeria Carreras has also lodged a complaint, alleging that Milei’s remarks were intended to create a devaluation effect. She stated, “Today, we are 30% poorer due to these statements because the dollar has surged and is dragging down the entire economy.”
However, Milei dismissed these accusations, asserting that his opinion was aimed at helping Argentines maintain their purchasing power. In a press conference, he stated:
In an economy with inflation, advising Argentines to stick with pesos is condemning them to poverty and destroying their savings.
Hot Take: Milei’s Controversial Statements Impact Argentine Peso
The Argentine peso has experienced significant turbulence following Javier Milei’s controversial comments comparing the currency to excrement. Milei’s statements have caused widespread concern among the population, leading to a surge in withdrawals of peso savings and a spike in demand for dollars.
While some argue that Milei’s remarks have created a devaluation effect and harmed the economy, others believe that his proposal to dollarize the country and eliminate the Central Bank could provide stability in the long run.
The legal complaints filed against Milei highlight the intense debate surrounding his views. As the upcoming elections approach, it remains to be seen how this controversy will impact both the value of the Argentine peso and the political landscape of the country.
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