With the aim of boosting consumption and strengthening economic activity, the national government will launch a new package of measures aimed at encouraging the use of cash dollars that are currently outside the banking system.
The plan, anticipated weeks ago by the Minister of Economy Luis Caputo, will seek to advance in a “endogenous dollarization” that allows for greater circulation of foreign currency in the domestic market.
A strategy to boost consumption with undeclared foreign currency
The official announcement is expected this Thursday before noon, and will be made by presidential spokesperson Manuel Adorni. The package would include modifications to regulations of the Central Bank, ARCA, and the Financial Information Unit (UIF), in order to relax traceability requirements in dollar transactions.
“The idea is not a traditional amnesty, but a relaxation of controls to facilitate the use of foreign currency without penalties,” official sources explained. Unlike previous schemes, this time it will not be required to deposit the dollars or justify their origin, but simply allow their use without creating fiscal conflicts.
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Changes in Income Tax and less strict controls
Among the measures under consideration, a modification in the income tax return regime for self-employed individuals is contemplated. The new scheme would allow declaring only net income, without detailing consumption or assets. However, this simplification would not apply to taxpayers with higher asset levels.
It is also being evaluated that the Central Bank and the AFIP automatically suspend reports for amounts considered low, while cross-information requirements in fiscal control systems are relaxed. All this would be implemented by decree, without Congress intervention.
Milei and Caputo defend remonetization
President Javier Milei reiterated that his administration will promote an “endogenous dollarization,” which implies allowing the free coexistence of the peso and the dollar. “Those who put the dollars under the mattress are not criminals. They will be able to take them out without leaving fingerprints,” he assured.
Meanwhile, Caputo estimated that Argentines have about 200 billion dollars saved and stated: “Why not use them?” He emphasized that the remonetization process “will be gradual and will encompass both pesos and dollars,” highlighting that the economy is in a position to absorb this transition.
