President Javier Milei’s administration has prioritized a managed crawling exchange rate band for the peso, launched in January 2026, alongside fiscal austerity and inflation reduction measures that lowered annual rates from over 200% to around 31%. Milei has publicly noted limited citizen support for full official dollarization, shifting focus to structural reforms and congressional initiatives in 2026 rather than currency substitution. This approach, combined with IMF-backed stabilization and reserve-building efforts, has reduced near-term prospects for replacing the peso with the U.S. dollar as legal tender. Traders reflect this consensus in low implied probabilities for completion by mid-2026 deadlines, though legislative progress on broader reforms or renewed capital market access could still influence timelines.