Argentines Buying Up Dollars After Milei Lifts Currency Controls

[MilHojas]

https://www.bloomberg.com/news/articles/2025-04-30/argentines-buying-up-dollars-after-milei-lifts-currency-controls

Argentine savers are going back to the bank to buy dollars after President Javier Milei granted them complete freedom to do so after five years of strict currency controls, at a time when many view the greenback as cheap.

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[carride]

Argentines like Pedro Aboy are seizing the opportunity, aware that the moment may be short-lived. The 30-year-old merchant in the Buenos Aires suburb of Hurlingham exchanged pesos for US$800 earlier this month. “Everything is going up in price — cars, merchandise, except the dollar,” he said. “It’s very cheap to buy dollars.”

Despite the relentless demand from consumers, the official peso remains strong when adjusted for inflation, bolstered by seasonal inflows from grain exporters and foreign capital seeking returns in carry trades.

Investors expected the peso to depreciate by more than 10 percent once the government eased restrictions, according to recent pricing in the futures market. But that hasn’t transpired. “Nothing magical happened to improve productivity, cut taxes, or boost competitiveness. The only thing that changed is that there are now more reserves,” Cottani said.