Dollarisation in Argentina: Allure, risks, and unintended consequences

Right-wing populist Javier Milei is favoured to win the October 22 elections in Argentina .

Milei says he would eliminate the central bank and make the US dollar legal tender.

But dollarisation is no panacea and could backfire disastrously without proper foundations, writes Julian Zelizer .

Zelizer: Dollarisation aided growth but unwittingly abetted laundering which begat drug trafficking as money launderers corrupted the power structure.

Argentina has made its priority to de-dollarise the global economy as it integrates with BRICS .

The world subsidises the American economy but that is through the control of its money supply, which countries using the dollar do not have.

Panama City is the shinning city on the isthmus' coast and the best argument for a dollar-based economy.

In El Salvador , dollarisation has had mixed effects on the country's money laundering problem.

Decades of volatility and mismanagement have left Argentina bereft of foundations deemed essential for dollarisation.

Most experts agree that solid dollar reserves are essential to back a new currency system and inspire confidence.