President Javier Milei’s administration has prioritized a crawling exchange-rate band introduced in January 2026 and continued fiscal consolidation over formal dollarization, reducing the near-term likelihood of replacing the peso with the U.S. dollar as legal tender. Public statements acknowledging limited citizen support for full currency substitution, combined with congressional constraints and improving reserve accumulation through the managed band, have shifted policy focus toward inflation targeting and renewed capital-market access. Traders assign low probabilities to dollarization by late 2026 because these measures address monetary instability without requiring the legislative and reserve thresholds historically needed for official adoption. Scheduled debt repayments, multilateral financing discussions, and 2027 midterm dynamics remain the principal variables that could alter timelines.