Milei's government seeks to allow up to USD 100,000 to be used without justification.

With the end of the extended period for capital laundering, which concludes next Wednesday, May 7, the Government of Javier Milei aims to encourage the dollars in the hands of Argentinians "under the mattress" to circulate again within the local economy, with the goal of boosting private consumption in a context of falling inflation, economic recovery, and shortage of pesos.

In this context, the Ministry of Economy, led by Luis "Toto" Caputo, is already working on a package of measures that will allow the use of cash dollars for purchases and payments, without the need to justify the origin of those funds.

"We want dollars to be used without giving explanations," Caputo recently stated during an interview broadcast via streaming. Although the specific details of the mechanism contemplated by the so-called "virtual laundering" promoted by the government are not yet known, it has been revealed that the limit for using foreign currency cash without explanations would be around 100,000 dollars.

In the same vein, the head of the Treasury added: "Let them be used to buy anything. I don't buy the story that people don't take out their dollars to spend them. The reality is they don't do it because they're hassled. People don't use them because they're afraid that the ARCA will pursue them."

The strategy of President Milei's economic team aims to encourage the use of the dollars that Argentinians possess to acquire goods, without implying sanctions for undeclared funds or for the purchase of currencies "outside the legal framework," something currently prohibited by existing regulations.

"It's a kind of covert laundering, the regulation isn't in place yet, it means you're going to buy an appliance and nobody asks you anything," explained the main representative of the government's economic area in recent hours.

According to estimates by Javier Milei's Government, they calculate that there are around 300 billion dollars outside the formal financial circuit, a figure higher than the estimates of INDEC and the IMF, which could be freely used for the purchase of vehicles, properties, appliances, or even invested in the capital market. Additionally, the implementation of some type of tax benefit is not ruled out.

In this framework, the measures in preparation would allow formalizing undeclared funds, increasing bank deposits in foreign currency, and strengthening the Central Bank's reserves. At the same time, they could boost consumption ahead of the legislative elections.