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Argentina Ends Currency Controls as Peso Floats and IMF Loan Bolsters Reserves

President Javier Milei's sweeping economic reforms mark the end of a 15-year system, introducing a floating peso exchange rate and securing $12 billion in IMF funds to stabilize the economy.

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.

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