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DW
15-06-2025
- Business
- DW
Milei urges Argentines to bank 'mattress dollars' – DW – 06/15/2025
Argentina's libertarian President Javier Milei has his sights set on an estimated $271 billion in cash stashed away by his fellow citizens to survive economic hardships. Thanks to sweeping spending cuts, Argentine President Javier Milei has managed to bring inflation in his country down from a monthly 25% in December 2023 to below 3% now, according to official data published by the country's INDEC statistics agency. And yet, the cost of living in Argentina is still rising, forcing the libertarian leader to make another controversial proposal to the public. He's called on his fellow citizens to spend their cash dollars squirreled away in mattresses and foreign bank accounts, long held by Argentines as a hedge against decades of economic turmoil. Last week (June 5), Milei's government sent a bill called Fiscal Presumption of Innocence to Congress, declaring that the law ensures that there will be no more persecution of those Argentines holding undeclared dollars. The measure widens a tax amnesty scheme rolled out last year which already lured tens of billions of dollars back into circulation. Milei's sweeping austerity measures have reined in inflation, but left many Argentines facing economic hardships Image: DW During Milei's 2023 presidential election campaign, his supporters marched through the streets of Buenos Aires waving oversized dollar bills featuring their candidate's face. Milei himself called the Argentine peso "worth as much as shit," initially pledging to replace it with the US dollar as legal tender once he's elected. Today, Milei's dollarization drive is back on the agenda, but in a different form. This time, it's not about switching the national currency, but about integrating the US dollars Argentines have been stockpiling at home into the formal economy. Dollars 'under the mattress' The INDEC agency has estimated that Argentinians have about $271 billion (€234 billion) hidden away, money that is colloquially referred to as "dolares del colchon," or mattress dollars. The exact amount is unknown, because the money is essentially undeclared. People began stockpiling these dollars during Argentina's prolonged periods of hyperinflation, which gripped the country until the end of 2023. Having access to US dollars in cash — or being able to receive and withdraw dollar funds — allowed people to sidestep skyrocketing peso prices by taking advantage of favorable exchange rates. In Argentina, dollar cash reserves became a kind of financial life insurance. Eugenio Mari, chief economist at the Buenos Aires-based libertarian think tank Fundacion Libertad y Progreso, finds this behavior perfectly rational. Speaking to DW, he said that for decades Argentines have tried to "protect themselves from inflation and from government overreach," meaning many used part of their income to buy dollars and kept them out of circulation. But saving in dollars also meant making consumption sacrifices and spending less overall. Cash dollars for economic recovery Now, President Milei wants to change that engrained behavior by convincing Argentines to bring the hidden dollars back into the monetary system for the benefit of the broader economy. The government argues that inflation has been tamed — at least for the time being — creating the right moment to release the hoarded cash. It's yet unclear how many Argentines are considering bringing their dollars back in circulation Image: Natacha Pisarenko/AP Photo/picture alliance But trust in a currency can be destroyed quickly, while rebuilding it takes much longer. So it's still unclear whether Argentines are willing to monetize their "mattress dollars" in sizeable amounts. In his effort, Milei is counting on deregulation and the removal of tax burdens to encourage them. Some even say the president is banking his political future on the scheme, which may come to be seen as a test of people's trust in his economic policy. So far, the plan is progressing slowly, daily newspaper Clarin wrote last week. 'Fiscal innocence' bill Technically, Argentinians are required to report any foreign currency holdings. But the law has never been fully enforced. Milei's bill guaranteeing fiscal innocence to offenders was a clever move, says economist Mari. "The removal of reporting requirements to the tax authority makes transactions easier and reduces the risk of citizens being pursued by the state, especially by tax authorities," said Mari. Since Javier Milei took office in December 2023, many economic indicators have improved. Inflation has dropped significantly, poverty is declining, the government has posted budget surpluses, and the economy is growing. Argentina sees protests swell ahead of major strike To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video According to recent World Bank forecasts, Argentina's economy is expected to grow by 5.5% this year, with another 4.5% projected for next year. However, prices for food and essential goods have soared, due largely to the rollback of state subsidies and the strengthening of the Argentine peso. Dollarization through the backdoor? Thousands of Argentines, meanwhile, are crossing borders into Chile, Paraguay, or Brazil to shop more cheaply, as the stronger peso is giving them a more favorable exchange rate. Hernan Letcher, director of the Centro de Economia Politica Argentina (CEPA) in Buenos Aires, believes Milei's aim with his dollar monetization plan is to "inject more dollars into the government's currency exchange system," which for him is "essentially a foreign exchange policy measure." As Argentines go shopping abroad, the country's central bank has reported growing capital outflows amid a stronger peso Image: Carol Smiljan/NurPhoto/picture alliance Nau Bernues, a financial expert and the CEO of Quaestus Asteriscos — a firm specializing in the financial system and investments — believes the government wants to "go even further." The plan is to make the dollar a "more transactional currency" that would allow people to "buy not only an apartment or a car, but also an appliance or even a cookie at a kiosk." "It's doing everything possible to ensure that there are more and more dollars. If that happens with constant pesos or no issuance, the exchange rate should appreciate," Bernues told the news agency Noticias Argentinas last week. He noted that Milei's economic team was "constantly proclaiming" that the dollar could fall from currently about 1,180 pesos per greenback to 1,000 pesos. But he personally is skeptical about Milei's "ambitious" plan, arguing that the dollars under the mattress are people's "insurance, perhaps their life savings," which they won't touch for anything, "except if they make it much easier to purchase land, real estate and assets that the average Argentine assigns a certain amount of protection." This article was originally written in German.
Straits Times
13-06-2025
- Sport
- Straits Times
Five young players to watch at Club World Cup
Franco Mastantuono (Club: River Plate, Age: 17, Position: Attacking midfielder) Argentina's Franco Mastantuono proving to be more than a handful as Chile's Guillermo Maripan tries to keep him on a tight leash during the teen's international debut in a 1-0 World Cup qualifying win for Albiceleste on June 5. PHOTO: REUTERS Widely regarded as the latest Argentinian football prodigy after his River debut in January 2024, the left-footed playmaker has established himself as a starter with coach Marcelo Gallardo's Buenos Aires-based side. This year, he has racked up seven goals and four assists in 19 games across all competitions for River, prompting Lionel Scaloni to hand him his first cap in Argentina's 1-0 win over Chile in Santiago just a week ago. At 17 years and 296 days, he became La Albiceleste's youngest debutant. The talented teenager will get a chance to show why Real Madrid triggered his US$45 million (S$57.9 million) release clause in a deal that will be completed after the Club World Cup. River take on Japan's Urawa Red Diamonds (June 17), Mexican side Monterrey (June 21) and Italian giants Inter Milan (June 25) in Group E. Estevao Willian (Palmeiras, 18, winger) Brazil forward Estevao taking on Ecuador's Piero Hincapie during a World Cup qualifier on June 5. PHOTO: AFP Hailed as the next big thing from Brazil since breaking Neymar's record for most goal contributions by an Under-17 player in the country's top flight in 2024, the Palmeiras winger will join Chelsea in a £56 million (S$95.4 million) deal after the Club World Cup. Having already earned five caps for Brazil, Estevao was in the starting line-up during Carlo Ancelotti's coaching debut for the Selecao a week ago. The fleet-footed Brazilian, who has been compared to his idol Lionel Messi, is set to come up against Argentina's World Cup-winning captain when Palmeiras meet Major League Soccer side Inter Miami on June 23, after other Group A encounters against Portuguese side FC Porto (June 15) and Al Ahly of Egypt (June 19). Rodrigo Mora (FC Porto, 18, attacking midfielder) FC Porto's Rodrigo Mora attempting a shot during a match against GD Estoril Praia in March. PHOTO: AFP It is his debut season with the senior Porto side, but Mora's statistics resemble those of a seasoned campaigner. Despite starting just 16 times in the Primeira Liga, he registered 10 goals and four assists to help the Portuguese club finish third and clinch a Europa League spot. While he has just signed a new five-year contract which includes a €70 million (S$103.5 million) release clause, it is unlikely to deter well-heeled admirers should he continue to shine. Desire Doue (Paris Saint-Germain, 19, winger) Germany defender Jonathan Tah closing down on France forward Desire Doue (in blue) during the Nations League third-place play-off on June 8. PHOTO: AFP The Champions League's Young Player of the Season will have greater expectations to live up to, after playing a key role in Paris Saint-Germain's historic triumph in Europe's premier club competition. Doue is the French word for 'gifted' and the winger certainly fits that description as he provided two goals and an assist to help PSG crush Inter Milan 5-0 in the Champions League final on May 31. Fatigue could be a factor, though, as Doue had also turned out for France in the Nations League just days after that victory. With three Group B games in nine days (June 15 – Atletico Madrid, June 19 – Brazil's Botafogo and June 23 – Seattle Sounders), coach Luis Enrique might have to look into managing his minutes. Kenan Yildiz (Juventus, 20, forward) Juventus' Kenan Yildiz trying to get past Genoa's Stefano Sabelli in a Serie A match in March. PHOTO: AFP The Turkey international was one of Juventus' bright sparks last season, scoring seven goals as the Serie A side secured Champions League qualification. Inheriting the No. 10 shirt worn by Juve greats such as Alessandro del Piero and Roberto Baggio did not seem to weigh him down. If he catches the eye at the Club World Cup – Juventus face 2024 Asian champions Al Ain of UAE (June 18), Moroccan side Wydad (June 22) and Manchester City (June 26) in Group G – suitors might come knocking on his door. Join ST's Telegram channel and get the latest breaking news delivered to you.
The Hindu
06-06-2025
- Sport
- The Hindu
Meet Franco Mastantuono — Real Madrid's latest Argentine wonderkid target from River Plate
On Friday, Franco Mastantuono made history when he became the youngest player to debut for Argentina's men's senior football team in a competitive match. He achieved this milestone by coming off the bench during La Albiceleste's 1-0 victory over Chile in a FIFA 2026 World Cup qualifier. At 17 years and 295 days old, he made history for the three-time world champions when he was substituted in for Giuliano Simeone in the second half at Estadio Nacional de Chile in Santiago. Meanwhile, the overall youngest player to ever feature for Argentina in any match, including friendlies, remains Diego Maradona, who made his debut at just 16 years three months and 28 days against Hungary in February 27, 1977. The teenager is reportedly joining Spanish giants Real Madrid from River Plate for an initial fee of about $45 million. FILE PHOTO: River Plate's Franco Mastantuono is widely regarded by the local media as the latest prodigy to emerge from Argentine football. | Photo Credit: Reuters The young forward made his debut for River in January 2024 and is widely regarded by the local media as the latest prodigy to emerge from Argentine football. A talented left-footed finisher, he established himself as a starter under coach Marcelo Gallardo and soon became a key part of the Buenos Aires-based team. Earlier, Mastantuono had been linked to other big European clubs such as Manchester United and Paris St Germain after attracting attention with a stunning free kick in River Plate's Superclasico win over Boca Juniors in April. Born in Argentina, Mastantuono is of Italian descent and holds dual Argentine-Italian citizenship. He was first called up to the Argentina national under-17 team squad by manager Pablo Aimar while still only 15. The youngster was described by River Plate youth coach Martín Pellegrino as a being capable of playing as an enganche, a play-making midfielder or a forward, noting his ball-striking ability.
The Star
05-06-2025
- Sport
- The Star
Soccer-Real Madrid agree deal for River Plate teenager Mastantuono
FILE PHOTO: Soccer Football - Copa Libertadores - Group Stage - River Plate v Independiente del Valle - Estadio Mas Monumental, Buenos Aires, Argentina - May 15, 2025 River Plate's Franco Mastantuono celebrates scoring their third goal REUTERS/Agustin Marcarian/File Photo BUENOS AIRES (Reuters) -Real Madrid have agreed to sign River Plate's young forward Franco Mastantuono for an initial fee of about $45 million, a spokesman for the Argentine club told Reuters on Thursday. The 17-year-old Mastantuono made his debut for River in January 2024 and is widely regarded by the local media as the latest prodigy to emerge from Argentine football. A talented left-footed finisher, he established himself as a starter under coach Marcelo Gallardo and soon became a key part of the Buenos Aires-based team. "The sale is settled, in the final talks it remains to agree on some details," a club source told Reuters, who gave no further information about the transfer. Mastantuono had been linked to other big European clubs such as Manchester United and Paris St Germain after attracting attention with a stunning free kick in River Plate's Superclasico win over Boca Juniors in April. River intend to keep the attacking midfielder on loan at the club until December to complete their Copa Libertadores campaign, according to local press reports. Argentina manager Lionel Scaloni recently called up Mastantuono for the first time for matches against Chile and Colombia in the South American qualifiers. He could become the youngest player to make his senior debut for Argentina. (Reporting by Ramiro Scandolo, writing by Janina Nuno Rios; Editing by Javier Leira and Ken Ferris)
Reuters
05-06-2025
- Business
- Reuters
Real Madrid agree deal for River Plate teenager Mastantuono
BUENOS AIRES, June 5 (Reuters) - Real Madrid have agreed to sign River Plate's young forward Franco Mastantuono for an initial fee of about $45 million, a spokesman for the Argentine club told Reuters on Thursday. The 17-year-old Mastantuono made his debut for River in January 2024 and is widely regarded by the local media as the latest prodigy to emerge from Argentine football. A talented left-footed finisher, he established himself as a starter under coach Marcelo Gallardo and soon became a key part of the Buenos Aires-based team. "The sale is settled, in the final talks it remains to agree on some details," a club source told Reuters, who gave no further information about the transfer. Mastantuono had been linked to other big European clubs such as Manchester United and Paris St Germain after attracting attention with a stunning free kick in River Plate's Superclasico win over Boca Juniors in April. River intend to keep the attacking midfielder on loan at the club until December to complete their Copa Libertadores campaign, according to local press reports. Argentina manager Lionel Scaloni recently called up Mastantuono for the first time for matches against Chile and Colombia in the South American qualifiers. He could become the youngest player to make his senior debut for Argentina.
