Milei has a moral duty to fulfil his promise of liquidating the central bank. | @ManuGarGojMX mises.org/power-market/m…

@mises @ManuGarGojMX It was politically infeasible, at least in his first term. They also have very few dollars relative to the payments in dollars. If Milei has to exchange all pesos for dollars, what's left to pay foreign debt?

I appreciate the point, but it's not accurate. Politically they now have the necessary majority to push the relevant reforms, but you could even argue it could be done without Congress. In terms of foreign debt, you need to look at the Central Bank and the Treasury separately. The Treasury has an account at the Central Bank. The Central Bank has more than enough dollars to withdraw all pesos from circulation, including those in the Treasury's account. This means that in a dollarization the government would keep all the dollars that belong to them and they would start receiving more dollars through taxation, so there would be no problems to pay the foreign debt.

@ManuGarGojMX @mises Is that possible with maturities so near term?