BUENOS AIRES, Jan. 2 (UPI) -- Argentina's government has enacted the so-called Fiscal Innocence Law, which changes tax evasion thresholds and seeks to encourage declaring and depositing undeclared U.S. dollar savings, commonly known locally as "dollars under the mattress," into the formal financial system.
Official data show Argentines held about $254 billion outside the banking system as of September, slightly below the $256.5 billion reported at the end of 2023.
The phenomenon reflects decades of mistrust in the financial system after repeated economic crises, bank account freezes and successive currency devaluations. Under previous administrations, the volume of undeclared dollars grew sharply amid restrictions on access to the official foreign exchange market.
The initiative is part of President Javier Milei's economic agenda. It aims to bring undeclared savings back into the formal economy, broaden the tax base and support economic activity.
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