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."
