Liberal analyst Carlos Maslaton reacted to a Financial Times report revealing the Trump administration's push to dollarize the Argentine economy. While he celebrated the idea, he raised several crucial questions about its implementation. "It would be great if Washington and Buenos Aires dared to proceed in this direction," Maslaton began. However, the lawyer warned that the debate is not ideological, but practical: "It doesn't matter if it's good or bad, what matters is how to do it." From there, Maslaton posed the questions that, in his view, define the viability of the plan: Conversion: How to instrument the monetary conversion of bank deposits, public and private debts, and all creditor relationships from pesos to dollars "to thus extinguish the Argentine currency forever." The rate and "confiscation": "Would liquid assets be confiscated in the exchange, because any rate above the current one implies confiscation of property?" Despite the doubts, Maslaton concluded his analysis by calling dollarization "an experiment worth living through," just to "see what they come up with" to solve these problems.
"Will the American Federal Reserve save it? Or does it simply collapse, and depositors lose everything?".
The bank bailout: The most critical point, according to Maslaton, is what would happen to banks in a system of "pure argendollars".
