Shutting down the central bank collapses most of the monetary interference structure in the economy. This will likely collapse the inflation rate and allow the economy to begin repairing itself.
The first issue is obviously debt
The central bank was going to fuck Argentina's creditors over with inflation so that they could pay the debt with funny money. Dissolving the bank will basically force Argentina to pay what they owe. Also, they can't introduce stupid policies to not pay back bonds, so they just have to treat it like they would any creditor. Worst case scenario, the creditors can now actually negotiate to have their shit paid back on an individual level, and forgein investment can return, knowing that the Argentinians can't get out of forgein debt with inflation.
Fight against corruption
Dissolving the central bank is a keystone to defeating corruption, as it is the cause of most of the corruption of the economy at a high level, and within the financial sector, as it is in every country. Leftism exists to perpetuate corruption as an influence racket, so his war on Leftism will be a war on corruption simultaneously.
you become slave to whatever currency thus slave to the country that issues that currency.
The US allows it, but doesn't advise it, because even they know it's actually quite risky for the economy of the state that does it. Fundamentally, it's a desperate move to try and push the Argentinan economy out of the hyper-inflation that it's in without causing an instantaneous economic depression. The currency can now be inflated at (what is probably closer to 10% in reality), rather than the 145% it's sitting at now.
it won't make Argentina's bad debt magically go away
Of course it won't. But what it will do is free Argentinians from being burdened by the government's credit rating. Dollarize, and suddenly private citizens and businesses can borrow at more reasonable 8-10% while the government can't. This allows commercial life to carry on even while the government continues to be a tire fire. This is exactly what happened in Ecuador and El Salvador.
Shutting down the central bank collapses most of the monetary interference structure in the economy. This will likely collapse the inflation rate and allow the economy to begin repairing itself.
The central bank was going to fuck Argentina's creditors over with inflation so that they could pay the debt with funny money. Dissolving the bank will basically force Argentina to pay what they owe. Also, they can't introduce stupid policies to not pay back bonds, so they just have to treat it like they would any creditor. Worst case scenario, the creditors can now actually negotiate to have their shit paid back on an individual level, and forgein investment can return, knowing that the Argentinians can't get out of forgein debt with inflation.
Dissolving the central bank is a keystone to defeating corruption, as it is the cause of most of the corruption of the economy at a high level, and within the financial sector, as it is in every country. Leftism exists to perpetuate corruption as an influence racket, so his war on Leftism will be a war on corruption simultaneously.
The US allows it, but doesn't advise it, because even they know it's actually quite risky for the economy of the state that does it. Fundamentally, it's a desperate move to try and push the Argentinan economy out of the hyper-inflation that it's in without causing an instantaneous economic depression. The currency can now be inflated at (what is probably closer to 10% in reality), rather than the 145% it's sitting at now.
Of course it won't. But what it will do is free Argentinians from being burdened by the government's credit rating. Dollarize, and suddenly private citizens and businesses can borrow at more reasonable 8-10% while the government can't. This allows commercial life to carry on even while the government continues to be a tire fire. This is exactly what happened in Ecuador and El Salvador.