However, both the USA and Argentina state that dollarization 'is not actively under consideration' at this moment. Hanke, who has extensively advised on dollarization, explained to officials that Argentina would be one of the 'obvious' candidates for this policy, along with other nations like Lebanon, Pakistan, Ghana, Turkey, Egypt, Venezuela, and Zimbabwe. Discussions in the Trump administration about dollarization come at a time of concern over Beijing's push for emerging markets to use the dollar less in cross-border transactions. A White House spokesperson confirmed meetings with Hanke but emphasized that the administration has not yet reached an official decision on whether to encourage dollarization, although President Trump has 'repeatedly reaffirmed his commitment to maintaining the strength and power of the dollar'. It is worth recalling that dollarization was a central campaign promise of Argentine President Javier Milei in the 2023 elections. However, Argentine Economy Minister Luis Caputo ruled out dollarization as a short-term option due to a lack of dollar reserves, although he did not reject it entirely. Despite the International Monetary Fund (IMF) warning that dollarization could condemn Argentina to low growth by forcing it to adopt the monetary policies of the US Federal Reserve, for figures like Jay Newman of Elliott Management, it is 'what has to happen if you want to break the cycle'. 'No final decisions have been made yet,' Hanke told the Financial Times. Argentina, a 'prime candidate' for dollarization In this context of seeking greater global dollarization, the Financial Times points out that Argentina is seen by 'some policymakers and economists' as a 'prime candidate' to adopt the dollar. This view is based on the 'frequent loss of confidence in the Argentine peso'. The mention of Argentina comes amid US involvement to try to calm a recent market crisis in the South American country. The British newspaper Financial Times revealed that officials in Donald Trump's administration are actively discussing ways to encourage other countries to adopt the dollar as their primary currency. This initiative aims to counter China's advance in eroding the global dominance of the US currency. According to the report, Johns Hopkins University professor and dollarization expert Steve Hanke met with staff from government departments, including the Treasury and the White House, to explore how the administration could promote this policy. 'This is a policy they are taking very seriously, but it is in progress.'
