President Javier Milei’s government has shifted away from official dollarization—replacing the peso with the U.S. dollar as legal tender or establishing a hard peg—toward a managed floating exchange rate, rebuilt foreign reserves above $47 billion, and private-sector currency competition. After easing most capital controls in April 2025 under an IMF-supported program, Argentines purchased over $26 billion in dollars through formal channels, narrowing parallel premiums and supporting disinflation from hyperinflation levels to around 30 percent annually. Milei has publicly stated that citizens prefer voluntary use of dollars over government imposition, and recent steps such as allowing broader dollar lending and a Central Bank charter reform focused solely on price stability reinforce this approach. With midterm elections passed and the next national vote in 2027, traders assign low probability to formal dollarization by late 2026 absent a major reversal in policy or reserves.