Argentina chooses US Dollar over BRICS membership

New Delhi | Updated: 21 November, 2023 5:56 pm IST
Argentina says no to BRICS, commits to supporting US dollar.

NEW DELHI: In a seismic political shift, Argentina’s recently elected right-wing populist, Javier Milei, has vowed to steer the nation away from the BRICS alliance, marking a departure from the geopolitical norm and signalling a potential realignment in global economic dynamics.

The maverick president-elect, who rode the wave of anti-establishment sentiment to victory, has not minced words in expressing his disdain for BRICS, referring to China and Russia as “assassin governments.”

Milei, known for his bold rhetoric, has been a vocal critic of the alliance, particularly condemning the inclusion of Iran, citing the painful memories of the 1994 bombing of a Jewish centre in Buenos Aires.

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Addressing the nation after his electoral triumph, Milei underscored his commitment to liberty, taking aim at BRICS members China, Putin’s Russia, and former Brazilian President Lula. “I defend liberty. China, Putin, and Lula don’t,” he declared, setting the stage for a potential reshaping of Argentina’s global alliances.

One of Milei’s most striking proposals is the potential rejection of BRICS membership, a move that, if materialised, would make Argentina the first country to decline the bloc’s invitation. The president-elect’s audacious vision extends beyond geopolitical realignment—it encompasses a radical economic overhaul.

Argentina found its new president in Javier Milei on Sunday.

Milei has outlined plans to replace Argentina’s beleaguered Peso with the US dollar, a move aimed at addressing the country’s persistent US dollar scarcity. This daring proposal, if implemented, could mark a significant departure from traditional economic strategies and could reshape Argentina’s financial landscape.

Moreover, the president-elect has declared his intention to close down the Central Bank, a move that, in tandem with replacing the Peso with the US dollar, reflects Milei’s commitment to unorthodox economic policies.

Also Read: Javier Milei’s unconventional win reshapes Argentina’s political topography

In an era where cryptocurrencies are gaining recognition, Milei has also signalled an inclination to buy Bitcoin as part of Argentina’s reserves, injecting a forward-looking dimension into his economic strategy.

As Argentina stands at the cusp of transformative change, the world watches with bated breath to witness the unfolding of Milei’s bold vision. While the new president’s plans are yet to be officially enacted, they have already sent ripples through the geopolitical landscape, prompting speculation about the potential ripple effects on global alliances and currency dynamics.

China Warns Argentina Of ‘Serious Mistake’:

On Tuesday, China warned that it would be a “serious mistake” if Argentina were to cut ties following the weekend’s presidential election triumph in the South American nation by a right-wing libertarian who has declared his refusal to engage with communists.

During a routine news briefing, Chinese Foreign Ministry spokesperson Mao Ning emphasised that the positive progress in bilateral relations with Argentina should be acknowledged. He stated that it would be a “serious mistake” for Argentina to sever ties with countries like China and Brazil.

Therefore, only time will reveal the true impact of Milei’s audacious policies, but right now one thing is certain: Argentina, under its new leadership, is poised for a journey that could reshape its destiny.

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