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Argentina dollar deposits spike by $8 billion under Milei

Published 09/23/2024, 08:14 AM
Updated 09/23/2024, 08:15 AM
© Reuters. Argentine President Javier Milei presents the fiscal year 2025 budget, at the National Congress in Buenos Aires, Argentina, September 15, 2024. REUTERS/Agustin Marcarian/File Photo
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By Hernan Nessi

BUENOS AIRES (Reuters) - Argentina's foreign currency deposits have jumped by around $8 billion since libertarian President Javier Milei took office in December, driven by a series of pro-market austerity measures and incentives to lure dollars back into the financial system.

The latest central bank data available on Monday show that total foreign currency deposits now exceed $24 billion, up from around $16.5 billion when Milei, an economist and former TV pundit, took power amid a major economic crisis.

© Reuters. Argentine President Javier Milei presents the fiscal year 2025 budget, at the National Congress in Buenos Aires, Argentina, September 15, 2024. REUTERS/Agustin Marcarian/File Photo

The government needs an injection of funds into Argentina's economy and financial system to help drag the country out of recession, as well as to shore up creaking state finances after years of fiscal deficits, draining reserves and high inflation.

Milei has offered an amnesty until Sept. 30 for people to bring funds back into the formal system without penalty after years of savers looking to hoard dollars outside the formal banking system, offshore, or even stuffed under mattresses.

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