Argentine Dollar Decree: A Game Changer?

In a bold move to invigorate the faltering Argentine economy, President Javier Milei is set to issue a decree that will entice billions of dollars stored privately by citizens. Set to be signed on Thursday, the decree allows Argentines to use dollars without disclosing their origin, a strategy to boost national economic activity.

Economy Minister Luis Caputo highlighted the importance of this initiative, noting that it will sustain economic momentum, particularly critical as Argentina emerges from a recession and previously severe inflation. The measure extends a tax amnesty program rolled out last year, which successfully returned tens of billions to the formal economy.

Addressing concerns, Caputo clarified that the decree targets ordinary Argentines, distancing the initiative from any criminal intent. He emphasized that many citizens, disillusioned by a turbulent financial system, resorted to storing cash in unorthodox ways. This legislative push seeks to bring such funds back into official circulation.

(With inputs from agencies.)