Overview

• Argentina has officially removed longstanding capital and currency controls, transitioning the peso to a floating exchange rate between 1,000-1,400 pesos per US dollar.
• The International Monetary Fund disbursed $12 billion, the first installment of a $20 billion loan, to replenish Argentina's foreign reserves and support economic stability.
• The reforms aim to attract foreign investment, boost exports, and address inflation, but economists warn of potential challenges in building reserves and controlling price volatility.
• Ordinary Argentines can now access dollars more freely, though benefits are uneven, with informal workers and those without savings seeing limited immediate impact.
• President Milei's broader austerity measures, including public sector job cuts and reduced government spending, continue to shape his ambitious economic overhaul.