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To Beat China, Latin America Should Consider Dollarization
Selected Defense & Strategic Writing
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A Cooperative Monroe Doctrine?
“The era of capitulating to coercion by the Communist Chinese is over.
Their growing and adversarial control of strategic land and critical infrastructure in this hemisphere cannot and will not stand. To accomplish this, our countries cannot face these shared threats alone. We have to face them together. America will confront, will deter and, if necessary, defeat these threats alongside all of you, our close and valued partners. To put America first, we will put the Americas first.”
Defense Secretary Pete Hegseth, opening remarks at the 2025 Central American Security Conference, Panama City, April 9, 2025.
The Dollar Under Siege
“The trade in local currencies is already underway, for example, between Brazil and China.” - Tatiana Rosito, Secretary for International Affairs at Brazil's Ministry of Finance
In April 2025, Fundación Andrés Bello’s China–Latin America Research Center highlighted reports that Brazil and China will trade in local currencies to reduce dollar reliance. Amid China-U.S. tensions, Brazil backs the shift to boost trade, cut costs, and support BRICS goals via the New Development Bank. The move signals growing momentum in Latin America toward financial diversification. It also underscores BRICS efforts to reshape the global economic order.
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Caputo Pushes Argentines to Unstash Their Dollars
On May 5, 2025, Argentina’s Economy Minister Luis Caputo signaled plans to encourage Argentines to spend the dollars they’ve long kept hidden “under the mattress” out of fear of investigation, a legacy of the 2001 banking crisis. In an interview, Caputo said the country needs dollars to circulate to boost jobs and wages, especially since the government has stopped printing pesos. While he didn’t give details, he hinted at upcoming deregulations that would let people spend freely without scrutiny, aiming to spur loans, purchases, and economic activity without adding pesos to the money supply.
Ecuador's President Pushes to Cement Dollar Supremacy
On March 18, 2025, Ecuador’s President Daniel Noboa issued an executive order reaffirming the U.S. dollar as the country’s sole currency, aiming to preserve the stability gained since dollarization began in 2000. The decree comes amid debate over new currency proposals like the “ecuadollar” and directs Congress to block the Central Bank from issuing alternative currencies.
According to the central bank of Ecuador, dollarization has “generated monetary and financial stability despite the external shocks that have affected the country over the last two decades,”
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