When reformers can’t dollarize, they often defend the currency with bands or quasi‑pegs, inviting runs that drain reserves and derail broader reforms. The political imperative to 'stabilize now' pushes even market‑liberal leaders into fragile exchange‑rate promises that markets can test and break.
— It cautions that exchange‑rate defense can neutralize reform agendas in emerging markets, guiding analysts to scrutinize currency regimes as much as legislation.
Yanis Varoufakis
2025.10.15
78% relevant
Varoufakis claims Milei borrowed heavily and used the central bank to prop up an overvalued peso rather than let the exchange rate float, illustrating how defending a currency peg/band can neutralize reform agendas and precipitate crisis—exactly the risk this idea highlights.
Quico Toro
2025.10.05
100% relevant
Milei dropped immediate dollarization and pledged to hold a peso band with scarce dollars, followed by an exchange‑rate crisis and stock sell‑off.
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