Overview
- Financial Times reporting says U.S. officials met with dollarization expert Steve Hanke starting in August to examine ways to promote use of the dollar in foreign economies.
- Steve Hanke told the FT the idea is being taken very seriously but remains in progress with no final decisions.
- The White House confirmed the consultations and reiterated President Trump’s commitment to a strong dollar, while stressing the meetings do not reflect an official policy.
- Argentina is repeatedly cited as a leading prospect given chronic loss of confidence in the peso, though Economy Minister Luis Caputo says the country lacks the reserves to dollarize in the short term.
- The IMF warns formal dollar adoption could constrain growth by tying policy to the U.S. Federal Reserve, as reporting also links the talks to countering China and notes parallel U.S. moves on dollar-backed stablecoins and recent financial support to Argentina.