Overview

• Argentina has secured a $20 billion, 48-month Extended Fund Facility deal with the IMF, with an initial $12 billion disbursement set to arrive by next week.
• The government has ended fixed currency pegs and long-standing capital controls, allowing the peso to float within a band of 1,000 to 1,400 pesos per dollar starting Monday.
• The IMF deal is part of a $42 billion financial support package, which also includes $12 billion from the World Bank and $10 billion from the Inter-American Development Bank.
• Economists are divided on the potential impacts of the currency reforms, with some labeling the changes as a devaluation that could trigger market volatility.
• President Javier Milei has promised unprecedented economic growth, citing the reforms as a cornerstone for stabilizing the economy, reducing inflation, and boosting investment.