President Javier Milei initially campaigned on full dollarization to replace the peso and eliminate the central bank, yet his administration has prioritized alternative measures including a sharp initial devaluation, monthly crawling adjustments, and a flexible exchange rate band system introduced in early 2026. This approach aims to rebuild reserves, reduce inflation, and restore access to capital markets through IMF support and bilateral financing without requiring congressional approval for currency replacement. Political constraints, limited foreign reserves, and economic stabilization via deregulation and fiscal reforms have kept dollarization as a distant medium-term option. Trader consensus reflects these barriers, with probabilities for near-term implementation remaining minimal absent major shifts in legislative support or reserve accumulation. Key upcoming factors include 2026 budget execution, inflation trends within the band framework, and any renewed discussions ahead of the 2027 presidential transition.