In January 2023, Argentina witnessed significant dollar purchases totaling US$ 3.709 billion, with individuals and businesses acquiring dollars in cash without specific purposes. This massive influx contrasted sharply with the US$ 980 million that came into the country, leading to a net deficit of US$ 2.730 billion as reported by the Central Bank. Notably, 1.6 million individuals participated in these purchases, spending US$ 2.613 billion, while about 730,000 sold dollars amounting to US$ 410 million.

This marked an acceleration compared to December 2022, where 1.5 million individuals purchased US$ 2.186 billion while 670,000 sold US$ 477 million. The sharp increase in outflow of foreign currency followed a partial lifting of currency controls in April 2022, which likely encouraged more people to acquire dollars for savings. Furthermore, the deficit was covered by the commercial surplus and debts incurred from international financial institutions like the IMF, indicating a reliance on external financial assistance in the wake of currency regulatory changes.

Additionally, net outflows related to travel, credit card use abroad, and tourism captured US$ 1.325 billion in January, matching the previous year’s figure. The significant dollar demand amidst ongoing economic challenges highlights the struggle many Argentine citizens face in maintaining their purchasing power amid inflation and currency instability, thus raising concerns about the fragility of the economic situation when coupled with reliance on external debt support.