President of Argentina, Javier Milei, grants permission to provinces for the establishment of their own currencies.
Argentina’s President, Javier Milei, has indicated his support for provinces to introduce their own currencies, signaling a shift in policy. This announcement came after a public exchange between President Milei and Ricardo Quintela, the governor of La Rioja province. During an interview on Jan. 14 with Radio Mitre, President Milei confirmed that he would not oppose the legal creation of local currencies by provincial authorities.
Quintela expressed his belief that the market would ultimately determine the success of these projects. However, Milei cautioned against the risks associated with such endeavors, particularly inflation. He warned that individuals who receive payments in these quasi-currencies from irresponsible governors would likely see a decrease in their income.
The governor of La Rioja has been advocating for the introduction of a separate currency for his province. This decision follows President Milei’s significant devaluation of the Argentine peso by 50% since taking office on Dec. 10.
This move is part of a broader strategy by the new administration to address Argentina’s skyrocketing inflation, which has reached its highest levels in over three decades. Additionally, the government has reduced the funds allocated to provinces from the federal budget.
Quintela criticized these measures as a form of “abandonment by the nation” and highlighted the urgent need to pay salaries, including those of police officers. As a result, he has called on the local legislature to establish the necessary legal framework for the creation of a local currency. This sentiment was echoed by Axel Kicillof, the governor of Buenos Aires province, who also expressed interest in issuing a local currency in December 2023.
