Argentina has been on a decades-long search for economic stability, but it always seems to be out of reach. High inflation has been plaguing the country and just surpassed 160% a year. Over the past couple of years, the local currency has collapsed. One U.S. dollar used to be worth 20 Argentinean pesos in 2018. Today, one U.S. dollar is worth 1,000 pesos on the black market. And that means for Argentineans, the real prices of everything — from groceries to gas — have spiked. In a country where the local currency is in free fall, promising to replace that currency with the US dollar can seem like a magical solution. Argentina's new president, Javier Milei, won in part by promising to do just that - to dollarize. To scrap Argentina's peso and replace it with the relatively stable, predictable, boring United States dollar. On today's show, what does dollarizing mean? Why dollarize, how to do it, and will it even work? For more:A black market, a currency crisis, and a tango competition in Argentina (Apple, Spotify, NPR)Venezuela's Fugitive Money TradersWhy Ecuador Uses The Dollar? : The Indicator from Planet MoneyHelp support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney. Learn more about sponsor message choices: podcastchoices.com/adchoices NPR Privacy Policy
This is planet money from NPR.
We are recording.
Yes.
Last week we called up video producer Lucas Babak to help us with a recording in Buenos Aires on Florida street.
Do you ever buy anything on that street?
No, no, no.
People who lives here don't even come to.
Oh, no, really?
You know, this is a touristic place and of course they have touristic prices.
This touristy Florida street is lined with chain stores and fast food places, also people who exchange dollars and pesos.
It was potentially a big day here.
Javier Millet had just become president of Argentina and he'd been calling for huge changes.
He's kind of an economic wrecking ball, and what he says and does sometimes impacts the value of the peso.
So we asked Lucas to try to interview one of the people who exchange money here.
People nobody wants to talk.
The previous administration actively controlled the buying and selling of dollars and made exchanging money at places like these illegal.
But still, money exchangers have lined the street and continue to line the street.
They call out Cambio.
Cambio, which basically means exchange.
Exchange.