Will Argentina’s capital amnesty be extended?

The market is contemplating a scenario in which President Javier Milei will try to get through the legislative elections with currency controls and without a devaluation. Will he succeed? It depends on dollars.

The capital amnesty, which started in late July, is progressing slowly, so the government won’t rule out extending the deadline for the first phase. The Central Bank is buying reserves again because there is less dollar demand from the energy sector — and, perhaps, because of a boost related to the PAIS tax.

“Teenage romance.” That’s how a major business and high-net-worth consultant described the beginning of the amnesty program. “There’s a lot of talk but little concrete action,” said an accountant who has worked with similar programs under various governments.

“The formalization of entry into the amnesty program is not yet enabled,” Marcelo........

© Buenos Aires Herald