Overview
- Domingo Cavallo urges the Milei government to eliminate the cepo and all foreign‑exchange restrictions, allowing free movement of capital.
- He proposes granting the U.S. dollar legal‑tender status and passing a congressional law in tandem with the 2026 budget to formalize the framework.
- His plan includes Central Bank reforms to operate in pesos and dollars via reserve requirements and open‑market operations to support an orderly float and genuine reserve accumulation.
- Cavallo criticizes the use of U.S. Treasury resources through the Fondo de Estabilización Cambiaria to support the peso, calling it a continuation of controls that undermines efforts to lower country risk.
- He cites supportive signals from President Donald Trump and investor Scott Bessent as potential gateways to market access, while stressing that any 2026 inflation decline and economic reactivation depend on immediate liberalization.