Dollars under the mattress: In Argentina, keeping savings outside the national banking system − whether hidden at home, in private vault companies, or abroad − and in US dollars is a deeply rooted habit. It stems from a long-standing mistrust of the peso’s value and from trauma that dates to the 2001 financial crisis, when bank deposits were frozen and many savers managed to recover their money only with great difficulty and at a loss.
The government led by the far-right libertarian Javier Milei, who has been in office since December 2023, sought to bring this money − estimated at $200 billion (roughly a third of Argentina’s GDP) − into the banking system. “Your dollars, your decision,” said presidential spokesperson Manuel Adorni on May 22, as he announced a program called the “Historical Reparation Plan for Argentinians’ Savings.” The plan is set to take effect on Sunday, June 1, before being reinforced by a legislative proposal. According to Economy Minister Luis Caputo, the goal is to unlock a “pent-up consumption” of dollars.