The Argentine government announced on Thursday a plan to allow citizens to use their savings in dollars without having to explain their origin.
“This change of regime aims to return freedom to people and stop thinking that those who have had to take refuge in the informal market are criminals,” Economics Minister Luis Caputo told a news conference.
Many Argentines distrust banks after successive economic crises and instead keep dollars “under the mattress”, in coffers or abroad accounts. Official sources estimate that unhealthy economies add up to at least $ 200 billion.
According to the authority, the high fiscal burden and the information regulations imposed by the State led about 50% of the Argentine economy to operate in informality.
The measures “will help increase formality and growth,” the minister added, arguing that Argentina needs “removalization” of the economy, whether in weights or dollars, to support growth.
“The purpose of these measures is to return to people the freedom to use the economies that the state itself forced them to take to the informal sector,” said Caputo.
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He has also announced that the limits on which certain consumptions or transactions should be informed to the Customs Revenue and Customs Agency will be increased, such as expenses with credit cards, debit and electronic portfolios, as well as public service consumption, car purchases and real estate.
The International Monetary Fund (IMF) said on Thursday that any measures adopted by Argentina to encourage the use of non-declared assets must comply with international money laundering schemes, as included in its current $ 20 billion program with the country.
The Argentine financial market received well the measure announced by the government. The Merval Index of the Buenos Aires Stock Exchange rose 1.4%after low opening.
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Presidential spokesman Manuel Adorni said at the press conference that Argentina’s Ultraliberal President Javier Milei will sign the decree on the measure, called the “Historical Repair Plan for Argentines savings”, and will send a bill to Congress to provide future save safety.
