Inflation in Argentina hit 287% in March. The central bank next month will introduce the 10,000 peso note, worth roughly $11.
An Argentina-focused ETF beat out other single-country peers in 2023. Its continued success in 2024 will hinge on the country's newest president.
President Milei is rolling out shock measures for the economy, including cratering the value of the currency and slashing spending.
"If they dollarize — that's a big if, by the way — if they go ahead with that, it will be an incredible boost for the economy and for the country."
Argentine stocks rallied broadly on Monday following the election victory of Javier Milei, who has said he would work to privatize industries.
US-listed shares of Argentine companies also rallied on Milei's election victory, with oil producer YPF rocketing 36%.
To meet maturity payments on its $44 billion debt deal with the IMF, Argentina has previously tapped its currency swap line with China.
Intervention by the Bank of Japan in currency markets won't help the yen, and may actually backfire, an analyst said.
Argentina's president said the country can now tap $6.5 billion worth of Chinese yuan, up from $5 billion.
"Those pieces of trash don't even work as fertilizers," presidential frontrunner Javier Milei said of pesos.
Patricia Bullrich, the candidate for Argentina's pro-business coalition, would also cut government spending and remove capital controls.
"For Milei's plan to work, he needs nothing," Francisco Zalles said, referring to Argentina's presidential frontrunner. "He just needs to dollarize."
"Some in Argentina romanticize Ecuador's dollarization. Reality is different," IIF's chief economist said, pointing to Ecuador's chronic low growth.
The Johns Hopkins professor echoed the views of Argentina's presidential candidate Javier Milei – who has also called for adopting the greenback as the country's local currency.
There are more than a dozen different peso-dollar exchange rates that are meant to stem outflows of the greenback.
More apartments are listing rents in dollars, and menus at restaurants are pricing dishes in greenbacks too.
"If Argentina wants a currency peg so badly - Dollarization is after all just a peg - peg to Brazil," an economist said.
Argentina needs a recession - not dollarization - to fix its plunging currency, according to Robin Brooks, chief economist at the Institute of International Finance.
"The recent decline and volatility in the Chinese Yuan, the Russian Ruble, and to a lesser extent the Argentine Peso, will only add further challenges to the idea of de-dollarization," an analyst told Insider.
An adviser to Milei said hyperinflation prevents structural reform and that dollarization is "a means to achieve economic and political objectives."