President Javier Milei’s economic reforms in Argentina have led to a remarkable increase in foreign currency deposits, rising by about $8 billion since he took office in December. This surge reflects growing confidence in Milei’s market-friendly policies and tax amnesty program, as reported by the Central Bank of Argentina with total foreign currency deposits now exceeding $24 billion. This marks a significant jump from the $16.5 billion recorded during a severe economic crisis when Milei assumed power.
Years of currency crises due to a lack of foreign reserves have plagued Argentina, making this influx of dollars into the financial system a welcome change. Milei’s goal of dollarizing the economy is showing progress, with the government hoping that this capital injection will revive the economy and stabilize public finances. To encourage more deposits, Milei has introduced a grace period until September 30 for individuals to repatriate funds without penalties, targeting those holding dollars outside formal banking channels.
While challenges like stagflation persist, the surge in dollar deposits indicates potential economic recovery and a restoration of trust in Argentina’s financial system under Milei’s leadership.