17.05.2025
NEWS

Seduction by the dollar: the cushion effect

Academic/Unit: Dante Romano.

Official statistics indicate that Argentinians had accumulated US$271.000 billion outside the formal financial system by the end of last year, a significant portion of which was denominated in US dollars. Rather than enticing foreign investors, the lifeline of initiating a virtuous cycle of savings and investment is readily available, just a click away in a virtual account or a few meters from a safe deposit box. But, in yet another paradox of Argentina's social experiment, the Central Bank has still not been able to overcome the deficit in its international reserves.

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