Argentina, a country that once emerged from the Pampas' mega-development plan, has been plagued by economic decline and inflation over the past few decades. However, what is surprising is that at the recent BRICS summit, this country went so far as to announce its refusal to join the BRICS organization, and what is even more shocking, they also announced their decision to fully dollarize. This behavior has sparked widespread concern and controversy. This article examines Argentina's decision, the reasons behind it, and its possible implications.
Argentina was once a rich country, famous for its livestock and plantation industries. However, with the advent of the 20th century, especially the Great Depression, Argentina began to suffer from economic aggression by the United States. The hegemony of the dollar has led to the constant decline of the Argentine economy, and inflation has become a tradition in the country. Today, inflation in Argentina is so severe that it exceeds 140% per year, with prices remaining high and the exchange rate continuing to fall. The official exchange rate of the Argentine peso against the US dollar is only 00028, a figure that shows the poor state of the country's economy.
In August this year, the BRICS leaders held a summit, and one of the topics on the agenda was the expansion of the BRICS organization. Prior to this, a total of 23 countries had applied for BRICS membership, but only six countries had been approved. Argentina is one of them, which is seen as the reward of the country's years of hard work. Previously, Argentina, Brazil and other countries jointly proposed the launch of a single currency in South America, the South dollar, which is undoubtedly a key step in the de-dollarization of South America. At the same time, Argentina has given preference to the renminbi in its relations with China, and has recently repaid its maturing dollar debt in renminbi. These moves are a clear indication that Argentina has been trying to shake off the influence of the dollar and push for de-dollarization.
However, just when people thought that Argentina would continue to promote the process of de-dollarization, the new ** Milley announced through social media ** that Argentina refused to join the BRICS. This decision has aroused controversy and discussion in all walks of life. At the same time, Milley also said that Argentina will be fully dollarized, which is clearly an action that runs counter to world trends.
1. Cause analysis
The reasons for Argentina's refusal to join the BRICS are complex and varied, starting with the fact that the country has been trying to de-dollarize, which is its long-term development strategy. The hegemony of the US dollar has brought great economic pressure and challenges to Argentina, and its inflation problem is also closely related to the hegemony of the US dollar.
Second, Argentina has experienced decades of economic hardship, with frequent fluctuations in inflation and severe turmoil in the economic system. In the face of such challenges, refusing to join the BRICS became an option for the country, perhaps an attempt to get out of it.
2. Impact analysis
Argentina's refusal to join the BRICS and its decision to fully dollarize will have significant implications for Argentina and the global economy.
First, Argentina could face greater international isolation, and refusing to join the BRICS would mean losing opportunities for economic cooperation and resource sharing with other member countries, which would adversely affect its economic development.
Second, full dollarization may make Argentina more dependent on the dollar, but subject to the volatility of the dollar and changes in economic policy in the United States, the country may face greater economic risks and instability.
On top of that, Argentina's decision has exacerbated the trend towards de-dollarization of the global economy, which could have a profound impact on the status of the dollar and the global economic landscape. Argentina's decision heralds a new option for other countries to reduce their dependence on the dollar in the global economy and find a diversified development path.
Argentina's refusal to join the BRICS and its decision to fully dollarize the country was an unexpected move that also sparked widespread concern and controversy.
Personally, I believe that Argentina's decision reflects the country's economic difficulties and dissatisfaction with the hegemony of the dollar. Although the country has experienced years of decline and struggle, it has maintained its spirit of independence and diversity. It also reminds us that the global economy needs a more equitable and open environment for development, and that the international community should respect the choice of each country and work together to build a stable, durable and sustainable global economic system.
In short, Argentina's refusal to join the BRICS and its decision to fully dollarize not only has a profound impact on the country's own economic development, but also brings challenges and opportunities to the global economic landscape and financial system. In the future, we look forward to seeing Argentina find a path that suits its own development and achieve economic prosperity and stability. At the same time, the international community should strengthen cooperation and make efforts for the diversification and sustainable development of the global economy.