The Argentine government will allow businesses to show prices in U.S. dollars before January ends, while the banking sector is paving the way in order to launch dual-currency debit cards.

The measure is set mainly to encourage Argentines to use U.S. dollars, as foreign tourists will still be charged in pesos at an exchange rate known as the “foreign tourist dollar.”

President Javier Milei was elected on a platform that included dollarizing the country’s economy and abolishing the Argentine peso. These measures, confirmed to the Herald by sources in the banking sector and from the government, could bring that promise closer to reality.

For the time being, the measures would not result in supermarkets nationwide showing their prices in both the national currency and U.S. dollars, as seen in countries like Venezuela or Cuba. A source close to the matter told the Herald that the sectors more likely to take advantage are household appliances sellers and travel agencies.

To achieve the first part of its plan, the administration would have to repeal resolution 7/2002. This legislation, in force since January 2002 — just a month after Argentina abandoned the “convertibility” that pegged the local currency to the U.S. dollar — makes it mandatory for businesses to exhibit their price in pesos.

The resolution specifies that, when goods or services are offered directly in foreign currency, “the price in such currency may be displayed in characters less relevant than those corresponding to the respective indication in pesos.” That requirement would be eliminated if the resolution is taken down.

Meanwhile, one of the country’s main payment services providers is set to launch dual-currency debit cards allowing Argentine customers to pay national businesses with U.S. dollars, a source close to the matter told the Herald.

While banks working in the country already issue debit cards that can be linked to both national peso and U.S. dollar accounts, the national retail infrastructure only works in pesos. After the cards are launched, Argentine businesses will be allowed to receive payments in U.S. dollars directly from their customers’ accounts. Those payments would not go through the MULC, Argentina’s single and free exchange market.

A government source told the Herald that credit cards will continue to be in pesos, and payments made in foreign cards will continue to be credited to the businesses’ peso account. “Tourists pay almost all their purchases 100% with credit [cards.] They do not use debit cards,” the source said.
People using foreign debit, credit, and prepaid cards will still get the “foreign tourist dollar” exchange rate, equivalent to to the “MEP” (“Electronic Payment Market”) rate plus a commission.