Argentine President Javier Milei is expected to sign a decree on Thursday that could free up billions of cash hoarded by individuals concerned about the country’s lengthy history of economic volatility.
According to presidential spokesperson Manuel Adorni, the new move, which builds on a previous amnesty attempt, permits Argentines to use undeclared funds without disclosing their origin.
The initiative aims to bring informal deposits into the formal banking system, a critical step as the country tries to recover from a recent technical recession and seeks to curb inflation, which had previously surged into triple digits per year.
Economy Minister Luis Caputo sees the program as a key component of Milei’s larger economic strategy to restore growth and financial confidence.
A nation of mattress bankers
There is a negative perception of Argentine banks. Over the years, economic crises, currency devaluations, and capital controls have caused many residents to primarily save in cash.
These reserves are generally stored under mattresses, in home safes, or sent abroad.
As a result, an amount of US dollars outside the formal economy has appeared in “shadow” form under this culture of financial secrecy.
The government believes billions of it remained outside official channels, which rendered them impossible to invest, lend, or otherwise put into productive use.
This unused capital, his administration believes, is vital in stabilising the economy.
The government is banking on creating trust by legalising the use of undeclared cash without any penalty or investigation, encouraging Argentines to quote unquote “reinsert” their money.
Expanding a previous amnesty
The new decree follows a tax amnesty program launched last year, which brought tens of billions of dollars back into the formal economy.
In exchange for declaring income and assets hidden from tax authorities, the scheme gave legal security.
It was one of the most forceful moves to encourage financial transparency in Milei’s administration, but without the threat of punishment.
The new decree opens the door to many people looking to participate without fear of repercussions, as, unlike past amnesties linked to asset declarations or time limits, it does not specify precise terms.
In a monumental change, it discards the obligation to disclose where the money has come from, therefore creating an easier environment for ordinary people with unaccounted-for savings to enter the economy legally.
The measure will also be introduced in Congress as a standalone bill, possibly to codify it into law and make it last longer than a presidential executive order.
Focusing on ordinary Argentines
The administration claims that the new policy is intended to assist ordinary citizens rather than affluent elites or illegal actors.
Officials hope that by framing the project as a cure for years of financial repression, they would gain popular support and eliminate the stigma of participation.
According to Caputo, the goal is not to enable money laundering, but to respect Argentina’s particular economic history, which has prompted millions of people to distrust institutions and protect their savings independently.
Supporters say that incorporating this money into the legal economy will enhance investment, promote consumer spending, and diminish demand for illegal markets.
As a result, this could assist in stabilising prices, increasing government income, and encouraging larger financial reforms.
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