Argentina Unveils Dollar Plan to Tap $400 Billion in Hidden Cash

Argentina’s government announced measures Thursday to encourage citizens to spend dollars they keep outside banks. Officials estimate Argentines hold between $200 billion and $400 billion in cash at home.

President Javier Milei revealed the plan after delaying it from last week due to legal issues. The government wants people to use their “mattress dollars” without fear of penalties or investigations.

Citizens will only need to file a sworn statement with ARCA, Argentina‘s tax agency, to use undeclared dollars. The plan differs from previous amnesty programs because it requires no taxes or penalties on hidden money.

Economy Minister Luis Caputo explained that people can now buy cars, real estate, and other major purchases with cash dollars. The government raised transaction limits to $50 million pesos for individuals and $30 million pesos for businesses before requiring detailed documentation.

The massive dollar holdings represent roughly one-third of Argentina’s entire economic output. These savings accumulated over decades as citizens lost trust in the peso and banking system during repeated economic crises.

Milei stressed the plan does not eliminate criminal liability for tax evasion. Large suspicious transactions will still face scrutiny. However, the government shifts the burden of proof away from citizens to tax authorities.

The president delayed the announcement to avoid accusations of vote-buying before Buenos Aires elections. He admitted the timing would have helped politically but refused to risk the measure’s integrity.

The plan operates in two phases. Milei will sign an immediate presidential decree, while Congress must approve legislation for long-term protections. This approach aims to provide both quick relief and permanent security for savers.

Officials expect the dollar injection to accelerate economic growth significantly. The plan could formalize more economic activity and increase tax collection through higher business volumes rather than direct dollar taxation.

Argentina’s history of sudden policy reversals makes citizens cautious about bringing savings into the open. The success depends on public trust that future governments will honor these protections.

The measure represents a fundamental shift from decades of restrictive currency controls. It acknowledges that punitive approaches failed to bring hidden dollars into the formal economy.

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