Overview

• The Wall Street Journal published an editorial arguing dollarization is now essential for Argentina following the Milei–Trump financial rescue agreement.
• Economy Minister Luis Caputo said dollarization is "discarded" for now, adding he is not opposed in principle and citing a lack of dollars for a successful switch.
• The piece praised Javier Milei’s pro-market reforms but noted inflation remains above 30% and investors are wary ahead of the October 26 legislative elections.
• It cautioned the U.S.-backed funds could throw "good dollars after bad" without a currency change and questioned the durability of reform under the current peso regime.
• The editorial said some opponents, including Caputo and certain hedge funds, benefit from carry trades, cited the IMF’s preference for devaluation, and pointed to Ecuador’s 2000 dollarization as precedent as Milei plans to visit President Trump in Washington.