US EditionArgentina’s Milei unveils bold plan to lure billions in undeclared dollars back home
- On May 22, Argentina's government, led by President Javier Milei and Economy Minister Luis Caputo, announced tax rule changes in Buenos Aires to encourage citizens to spend undeclared dollars held outside the formal financial system.
- The announcement follows decades of restrictive currency controls and widespread mistrust in the peso and banking system, with estimates of $200 billion to $400 billion held unofficially, prompting a shift away from punitive measures to a new currency regime.
- The measures allow Argentines to deposit, transfer, and spend hidden dollars without explaining their origin, lifting tax-reporting and bank inquiry requirements and inviting use of dollars for major purchases like houses and cars.
- President Milei stated in interviews that individuals can freely spend dollars, such as purchasing a $200,000 home, without having to provide explanations or face scrutiny, while officials emphasize that tax evasion laws and investigations into suspicious large transactions remain in effect.
- The policy aims to boost Argentina's scarce foreign reserves and stimulate the economy through an 'endogenous dollarization' plan but raises concerns about possible laundering of illicit funds, with the IMF urging alignment with financial transparency commitments.
96 Articles
96 Articles
Argentina unveils bold plan to lure billions in undeclared dollars
BUENOS AIRES, Argentina — Argentina’s government on Thursday unveiled an ambitious scheme to bring billions of undeclared US dollars tucked under mattresses or stashed in foreign bank accounts back into the crisis-prone country. This, as libertarian President Javier Milei seeks to boost Argentina’s low international currency reserves and stimulate the limping economy. By eliminating tax
“There are different ways to dollarize... Dollarization is like pizza, there is ham and mozzarella, mozzarella, the spring that has anana, pepperoni, fuozzeta. There are a lot of pizza models, you can make them...
El Periódico
"Argentines are innocent again until ARCA (the Treasury) proves otherwise; your dollars, your decision." The government needs like the water of the US currency to sustain its economic program, which, according to the extreme right, is not only the guarantee of an electoral victory in the October parliamentary elections but also the permanence of Javier Milei in the Executive beyond 2027. As the dollars accumulated by the Central Bank of the Arge…
Argentina needs dollars and the Government of Javier Milei has managed to get them so far. First it was a money laundering of $20 billion; then a credit from the International Monetary Fund (IMF) for another $20 billion; now it is time to go for the prize: $270 billion which, the Government estimates, families keep “under the mattress” or outside the system. This Thursday, the Government presented by presidential decree a seduction plan that, in…
(CNN Radio Argentina) – Eduardo Amadeo, economist, spoke this Thursday with CNN Economics and News of Julieta Tarrés about the package of measures announced by the government to encourage the income of dollars to the financial system.
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