Recently, Argentina, a country with great influence in the world, announced its refusal to join the BRICS organization. The country has chosen to go in the opposite direction, not only rejecting the opportunity to join the BRICS, but also declaring that it will fully dollarize. This decision came as a surprise and attracted widespread attention and discussion.
Argentina was pleasantly surprised by the organization's approval to join the BRICS summit in August this year. In previous applications, 23 countries wanted to join the BRICS, but in the end, only Argentina, Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates were approved. For Argentina, this is a reward for hard work. In particular, the high-level meeting between Argentina and Brazil demonstrated Argentina's efforts to promote the launch of a single internal currency, the South American dollar, and was an important step in the de-dollarization of South America. In addition, Argentina has given priority to using the yuan to settle with China**, and even repaid a maturing US dollar debt in the yuan. These actions show that Argentina has been trying to break free from the shackles of the dollar and promote the process of de-dollarization.
However, it is surprising that Argentina, having had the opportunity to join the BRICS, has expressed its willingness not to join. The new Millay's hand-picked chief announced on social media that Argentina would not join the BRICS. This decision shows that the country** is taking a reverse course to other emerging countries.
Argentina used to be an economically developed country with a well-developed livestock and plantation industry, and was known for exporting livestock products and agricultural products. But after the 20th century, especially after the Great Depression, the United States gradually emerged as a global power and began a series of harvesting operations against Argentina. Due to the long-term constraints on the hegemony of the dollar, Argentina's economy began to decline.
In recent times, Argentina has had a particularly acute inflation problem. Inflation has exceeded 140% over the past 12 months. Prices are constant**, while the exchange rate is constant**, and the official exchange rate of the Argentine peso against the US dollar is currently only 00028。Faced with this dilemma, the new ** Milley decided that the de-dollarization attempt did not bring the expected success and decided to fully dollarize.
Argentina's decision-making has attracted a great deal of attention and discussion. On the one hand, it is a reflection of the determination and courage of Argentina** to try to get out of its economic predicament through full dollarization. On the other hand, it also raises a lot of questions and concerns. Will full dollarization really solve Argentina's economic problems?What impact would this have for a country that was once a developed country?Does this mean that Argentina has given up the opportunity to cooperate with the BRICS?
In my opinion, Argentina's decision has its rationality and merit, but it also needs to be approached with caution. Full dollarization can stabilize exchange rates and prices to some extent, but it is not a fundamental solution. Argentina should devote itself to deepening economic reforms, strengthening industrial upgrading and innovation capabilities, improving the competitiveness of the domestic market, and actively promoting cooperation with BRICS countries to jointly create a new situation in economic development.
To sum up, Argentina's decision to refuse to join the BRICS organization and fully dollarize has attracted widespread attention and discussion. The country's economic recession and inflation have forced it to take a series of measures to deal with it. However, in the decision-making process, Argentina needs to take into account feasibility and long-term development, not only relying on full dollarization, but also strengthening its own economic reform and innovation capabilities, and actively promoting cooperation with other emerging countries to achieve sustainable economic development.