President Javier Milei of Argentina announced the lifting of most capital and currency controls following the approval of a $20 billion bailout package from the International Monetary Fund (IMF). This move aims to normalize Argentina’s economy after years of unbridled spending. The IMF praised Milei’s austerity program and zero-deficit fiscal policy, which seeks to address macroeconomic vulnerabilities. The removal of exchange rate controls, known locally as “el cepo,” is expected to encourage foreign investment. The peso will now trade within a currency band ranging from 1,000 to 1,400 pesos per dollar, expanding by 1 percent each month. Milei’s reforms have delivered Argentina’s first fiscal surplus in nearly two decades but have yet to spark a sustainable recovery. The IMF’s loan represents the 23rd rescue package in Argentina’s history. Despite the risks of capital flight, Milei remains optimistic about stabilizing inflation and promoting long-term growth.
— new from PBS
