Mobius eyes technology and software sectors in Argentina
Renowned investor Mark Mobius, known for his strategies regarding emerging markets, stated that the dollarization plan of Javier Milei, who won the Argentine elections, will support the economy. Mobius also expressed that Milei's plan to close the central bank would be another step in the right direction.
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Experienced emerging markets investor Mark Mobius said that the plan by Javier Milei, who won the elections in Argentina, to dollarize the Argentine economy would provide a major boost to the country.
In his interview on Bloomberg TV, Mobius said, "This will be an incredible boost for the economy and the country. You will see inflation drop dramatically. If they get rid of the central bank, that will be another step in the right direction."
Mobius stated that the South American country has been a "dangerous" and "difficult" place to invest until now due to its volatile currency and high inflation.
Adding that Argentines hold dollars abroad to protect themselves and that this money could return to the country as confidence increases, Mobius said, "It's a psychological effect. As long as you are pegged to the dollar, you will see an incredible return of confidence."
Mobius is interested in the technology and software sectors in Argentina.
The 87-year-old investor also said that, given their history of high inflation, a common currency between Brazil and Argentina would be beneficial for both countries. The idea of a common currency was brought to the agenda by officials from both countries at the beginning of the year.