Argentina's Dollar Habit Proves Stubborn Even With Slower Inflation

Argentines learned to buy dollars after years of losing savings. Economist Martín Tetaz says regaining confidence in the peso might take years even after inflation is under control.

Even after a decade of earning interest, an Argentine bank depositor could end up with less than half their original purchasing power. Such an experience is not easily erased by government announcements of improving inflation figures.

According to The Exodus Economy report by BeInCrypto Intelligence, a peso term deposit kept only 44% of its original purchasing power from June 2016 to June 2026. A person who held $10,000 worth of peso cash saw it shrink to roughly $114 in dollar terms.

Martín Tetaz, an Argentine economist and former national deputy, spoke to BeInCrypto about the deep attachment to dollars that has resulted from this experience.

“Demand for dollars is, in practice, the purchase of insurance. It’s like buying car insurance. And it’s a habit that is learned, and that takes time to unlearn.”

The ten-year comparison in the report highlights why savers sought alternatives. Dollar cash retained 74% of its purchasing power in Argentina.

Dollars invested in short-term US Treasury yields held 94% of their purchasing power. A Brazilian CDI-linked deposit, in contrast, boosted local purchasing power by 50%.

Over the decade, dollar cash itself lost some purchasing power. However, the peso options tracked in the report fared significantly worse.

Peso's Case Improves

Annual inflation under President Javier Milei has dropped well below its approximate 289% peak recorded in April 2024. According to the latest INDEC data, the rate stood at 33.8% in July 2026. Monthly inflation inched up to 2.1%, from 1.9% in June, indicating that prices continue to increase noticeably.

Tetaz anticipates that the dollar preference will persist long after the immediate economic recovery.

“First it has to eliminate inflation, and then, once inflation is gone, for at least seven or eight years it will keep seeing significant dollar demand until that stability consolidates,” Tetaz said.

That represents his timeframe for recovering confidence. Savers need to be convinced that present improvements will outlast a change in government before they commit funds for extended periods.

Easier Access to Dollars

The report documents a further significant shift. The premium for purchasing dollars on the parallel market versus the official rate dropped from more than 150% in 2023 to approximately 2% by July 2026.

A smaller premium reduces the cost of acquiring dollars. Alone, this does not indicate whether individuals desire to hold fewer dollars.

Evidence suggests some crisis-driven demand is softening. Payroll data from Deel, released by a16z crypto on August 30, indicates that the proportion of Argentine contractors receiving payment in USDC, a stablecoin tied to the dollar, declined as inflation slowed, and then plateaued. The data set is limited to Deel contractors and does not indicate a nationwide shift back to peso savings.

The report also illustrates the accessibility of digital dollars. On the Argentine wallet Lemon, average tracked withdrawals reached $544 in the first half of 2026, with monthly medians ranging from roughly $150 to $270. These figures are affordable for typical wage earners.

Tetaz thinks a more stable peso could regain some everyday functions.

“If stability returns, short- and medium-term contracts will all be in pesos, and many of the economy’s dollar contracts will unwind.”

He anticipates that longer-term commitments, like mortgages, might keep inflation-linked structures. Those earning dollars may continue to favor dollar-denominated rents.

Thus, Argentina might rebuild confidence in the peso without convincing everyone to give up dollars. For a typical household, using pesos for near-term expenses involves a far smaller faith commitment than entrusting them with a decade of savings.