Argentina has agreed to relax its strict currency controls as part of a $20bn loan from the IMF, as pressures mount on libertarian President Javier Milei’s plan to revive the troubled economy.
The country’s central bank said on Friday it would next week lift the controls, which limit the movement of dollars outside of Argentina, for individuals while maintaining some restrictions for companies.
It will also partially float the peso’s official exchange rate, allowing it to fluctuate between 1,000 and 1,400 pesos to the dollar, compared with 1,108 pesos to the dollar today. This replaces a controversial policy that has strengthened the peso dramatically in real terms by devaluing the currency just 1 per cent a month despite much higher monthly inflation.