The Argentine government officially announced the lifting of the currency controls, a historic measure that marks the beginning of a new economic phase. After years of restrictions imposed on the foreign exchange market, the free buying and selling of dollars for individuals and legal entities is again permitted, within the framework of a new financing agreement for 20 billion dollars. The exchange rate will begin to be governed by a controlled floating band between 1,000 and 1,400 pesos per dollar, with monthly adjustments of 1%.
The declared objective of the economic team is clear: to normalize the foreign exchange market, stabilize the peso, and reduce inflation. Minister Luis Caputo emphasized that this measure aims to strengthen competitiveness and attract investments, while also relaxing import payment regulations. However, some restrictions, such as the distribution of profits abroad, will remain in effect until 2025.
The new economic package has international backing: the World Bank and the IDB will jointly provide more than 20 billion dollars. Nevertheless, significant challenges persist, such as containing volatility and the risk of a sharp devaluation. The transition will be key to assessing the success of this bold endeavor.
