Argentina's Economy Won't Be Dollarized Yet: Five Things Must…

not yet

BLOOMBERG — Argentine President Javier Millay does not believe his government will dollarize the economy before next year's midterm elections, providing the first indication of a timeline for the campaign's most ambitious economic proposal. “I don't think we'll get to the elections next year, but the goal is there,” Milei told CNN en Español in a taped interview that aired Sunday night.

Miley had previously said dollarization would happen after his government cleaned up the central bank's balance sheet and reformed the country's financial system. Without specifying the dates. While insisting during the interview that Miley was advocating for “free currency competition,” he acknowledged that the U.S. dollar remains the strongest currency in circulation.

Recovery after vacation

U.S. stocks rose on Monday as last week's inflation data had little impact on views that the Federal Reserve will cut interest rates this year.

Data released during Friday's market holiday showed the core personal consumption expenditure price index This excludes volatile food and energy costs— increased by 0.3% In February, this represents a slowdown compared to the previous month and puts it in line with economists' expectations.

Pavel speaks

Federal Reserve Chairman Jerome Powell said Friday that the numbers were “in line with our expectations.” Pavel added It may not be appropriate to cut rates until central bankers ensure that inflation is under control. And the central bank is in no rush to cut rates. Investors are betting that the US Federal Reserve will make its first interest rate cut in June.

Gold in achievement

Challenges such as Fed easing are fueling a rally in gold, which hit a new record high. Bullion rose to US$2,265.73 an ounce on Monday, up 1.6% from Thursday's close, after hitting a series of highs in recent sessions. Other factors have also helped the metal rise about 14% since mid-February Increased tensions in the Middle East and Ukraine and heavy buying by central banks, particularly in China.

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Faith in China

Markets around the world are getting a boost from improved sentiment around China, where data showed factory activity beat expectations in March, boosting confidence in the country's ability to meet its ambitious growth target of 5% this year.

It came after government data showed March manufacturing PMI ended a five-month contraction and reached its highest level in a year. China's CSI 300 index rose as much as 1.8% on Monday, its biggest advance since February 29.

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