(May 5th, by Huang Dong from the Argentina Chinese Media) Argentine Economy Minister Caputo recently announced that the government is issuing a regulation allowing people to use "off-the-books" savings dollars freely for shopping without restrictions.

It is reported that the government hopes this estimated $200 billion can return to the domestic consumer market without questioning its origin. In this regard, Caputo emphasized: "We hope you can buy whatever goods you want with these dollars and don't need to explain anything to anyone."

According to media reports in Argentina, this measure is currently in the drafting stage, aiming to promote the use of foreign currency savings outside the banking system, including dollars stored in safes, offshore accounts, or colloquially referred to as "under the mattress."

According to official data from the National Statistics Institute of Argentina, by the end of 2024, the total amount of dollars outside the financial system accumulated by Argentinians reached 271.247 billion, which is almost seven times the current total reserves of the Central Bank of Argentina (38.96 billion).

Caputo confirmed the plan during an interview. He explained that the purpose of this measure is to stimulate the circulation of these dollars in the real economy, which can be used for any purpose, including purchasing household appliances, cars, properties, or land. "We need more dollars to circulate, and this requires deregulation. Clearly, we should take some measures to make people more willing to spend their dollars hidden under mattresses, in safes, or anywhere else."

Caputo stated: "Saving dollars is a cultural issue. Many people are unwilling to spend dollars because they fear being scammed, fear the central bank's investigation and questioning, so they just hide them away."

It is reported that the idea of promoting the circulation of dollar savings has been around for a long time in the Ministry of Economy of Argentina. Since the beginning of the MiLai administration, measures have been taken to allow transactions in dollars in industries such as tourism and automobiles. Now, the government hopes to promote this idea through more relaxed supervision to facilitate the use of foreign currencies in daily shopping without bureaucratic obstacles.

Caputo did not reveal the specific time for implementing this law, but also mentioned that there might be resistance: "There will always be controversy because some people do not want the country to prosper."

Last week, Caputo told many entrepreneurs and investors at the Argentine Economic Conference: "We hope to see the re-monetization of dollars. In the near future, perhaps within two weeks, we will announce some surprising measures and greatly promote the use of dollars."

In addition, Caputo also announced the promotion of tax reforms to promote competition among provinces, especially value-added tax (VAT). "Regarding VAT, we hope to see tax competition among provinces." Specifically, the national government will retain 17% of the total tax rate of 21%, while the remaining portion will be decided by each province whether to increase or decrease. "The best way is to let provinces compete with each other; some provinces are willing to lower it because there will be more investment and higher efficiency."

Original Source: https://www.toutiao.com/article/7501246083335766547/

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