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Argentines Keep Dollars Out of Banks, Blunting Milei’s Dollar Repatriation Push

Lasting scars from the 2001 bank freeze keep savers in cash, curbing early gains from the new Inocencia Fiscal law.

Overview

  • Bloomberg’s analysis published Sunday found foreign-currency deposits have risen by less than $1 billion since February despite an official estimate of about $170 billion held off the books.
  • The Inocencia Fiscal program, in force since February, promises confidentiality and lower audit risk to coax hidden dollars into bank accounts.
  • President Javier Milei acknowledged the limits of the policy and Economy Minister Luis Caputo urged savers to deposit cash instead of keeping it at home.
  • Market economists, including Facimex Valores’ Adrián Yarde Buller, said a law will not change behavior without rebuilt institutions and a long stretch of stability.
  • Many Argentines still store dollars at home or in safety-deposit boxes and even price bills by portrait style in the informal market, a habit shaped by the 2001 corralito and reinforced by repeated crises.