Argentina: In 2025, Any Currency Can Be Used for Trading
Next year, the use of the dollar and other foreign currencies in national trade should be fully liberalized
As early as next year, in Argentina, “the market for the dollar and other foreign currencies will be fully opened, and taxes on their circulation, currently applied by the Central Bank, will be reduced by up to 90%.” A word from chainsaw-wielding President Javier Milei (pictured), who addressed the nation in a televised address on Tuesday evening, December 10 (December 11 in Europe) to mark the anniversary of his first year in office.
“Next year, the abolition of the ‘cepo’ (a set of restrictions imposed by the Argentine Central Bank on the purchase and sale of foreign currency) will become a reality,” said Milei, according to whom “for this reason we are working on a definitive solution to the Central Bank’s reserves problem through a new program with the International Monetary Fund (IMF) or through agreements with private financiers.”
For many years, the so-called “cepo” has been the main instrument used by Argentine leaders to maintain government reserves in hard currency, especially in US dollars, in the face of the ongoing devaluation of the Argentine peso.
According to Argentine newspapers, the next step after the liberalization of the foreign exchange market should be the full liberalization of the use of the dollar, euro, and foreign currencies in national trade. “All Argentines will be able to use the currency they want in their daily transactions, which means that from now on, every Argentine will be able to buy, sell, and invoice in dollars or in the currency they deem most appropriate,” promised Milei, specifying, however, that “for the time being, the peso will still be the mandatory currency for the payment of taxes and duties in Argentina.”
In his address to the nation, Milei reiterated that he “intends to continue cutting public spending,” activating – if necessary – “the chainsaw even deeper.” According to Milei, his policies “also guarantee a 90 percent reduction in taxes demanded by the central state” and return to the provinces “the fiscal autonomy they should never have lost.”
