In Argentina, the currency exchange black market is tolerated and “cuevas” are part of the game. At Calle Florida, a crier - known as “arbolitos” - is in every corner offering the service. However, make no mistake, currency exchange outside the country’s current regulations infringes the Foreign Exchange Criminal Law and thus is a criminal offense.

Nevertheless, the “cuevas” fuel the Argentinian economy. If people had to follow the law, the economy would grind to a halt. Plus, some see what these small establishments do as beneficial to the community. The population needed dollars because the peso was melting away, and black market trades at a “cueva” was the most convenient way of acquiring them.

The service is against the law, sure, but it’s not frowned upon. And it might be completely legal soon enough. On February 22nd, President Javier Milei told a local news channel:

“We would like to move to a system of currency competition, maintaining the peso and with a law that we will be sending to Congress that will define seigniorage as a criminal offense.”

We’ll get to that, but first, let’s explore the “cuevas” phenomenon and define some concepts.

• How Much Money Do The “Cuevas” Move?
• Main Players In The “Cueva” Ecosystem
• Possible Penalties
• At The Top, The “Cuevas” Ecosystem Works Like This
• What Do The “Cueveros” And The Goverment Have In Common?
• The Dollar Blue Under Javier Milei
• How Do The “Cuevas” Relate To Bitcoin?
• Against All Odds: The Peso’s Stabilization

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