Argentina Dollar Deposits Surge by $8 Billion Under Milei, Reports Reuters

By Hernan Nessi

BUENOS AIRES (Reuters) – Since libertarian President Javier Milei assumed office in December, Argentina’s foreign currency deposits have surged by approximately $8 billion. This increase is attributed to a series of pro-market austerity measures and initiatives designed to encourage the repatriation of dollars into the financial system.

According to the latest data from the central bank, total foreign currency deposits now exceed $24 billion, a significant rise from around $16.5 billion when Milei, an economist and former television personality, took charge during a significant economic crisis.

The Argentine government is in urgent need of an influx of funds to revitalize the country’s economy and financial system, particularly to recover from recession and stabilize state finances that have been strained by years of fiscal deficits, diminishing reserves, and high inflation.

In a bid to facilitate this process, Milei has introduced an amnesty until September 30, allowing individuals to return funds to the formal system without facing penalties. This initiative comes after years in which many savers opted to keep their dollars outside the formal banking system, whether offshore or stored away at home.