Argentina’s ultra-liberal government on Friday announced a major easing of its strict currency controls following the approval of a fresh billion-dollar loan from the International Monetary Fund (IMF).
Economy Minister Luis Caputo said individuals in Argentina will be allowed to buy unlimited amounts of US dollars, scrapping a previous cap of $200 per month.
The official exchange rate will shift from a fixed system to a flexible one, allowing the peso to fluctuate within a set range based on market demand.
This decision follows the IMF’s approval of a $20 billion bailout package for Argentina.
Argentina is the IMF’s largest debtor and already owes the fund more than $44 billion. The new loans are now to be used to cover interest payments to the IMF and to increase the central bank’s currency reserves.
The country’s right-wing libertarian President Javier Milei, who took office in December 2023, has initiated radical reforms. Thousands of civil servants were dismissed and social programmes were massively cut.
While his austerity measures significantly reduced inflation, they also stifled the economy and sparked mass protests across the country. In this once-affluent country, now more than 50% of people live below the poverty line.
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