From Yahoo Finance: 2025-04-15 11:03:00

Argentina received the first $20 billion installment of its IMF bailout after President Milei removed strict capital and currency controls, boosting Central Bank reserves to $36.8 billion. Ending controls means Argentines can now freely buy dollars, impacting individuals, companies, and exporters positively. Milei aims to stabilize the economy after years of turmoil.

The move to lift controls followed years of restrictions under “el cepo” that limited access to foreign currency, causing multiple exchange rates and a black market. Milei’s shift to a free-floating peso aims to combat inflation and stabilize the economy. The peso traded at 1,230 to the dollar, with positive market reactions to the change.

Ordinary Argentines rushed to withdraw dollars from banks and adapt to the policy shift, while some remained unaffected by the changes. The end of controls benefits companies by increasing certainty for investments and boosting exporters. However, the nation remains cautious about the long-term impact on the economy post-lifting of controls.

The IMF’s support and Milei’s economic policies signal a new direction for Argentina, with implications for global markets. Despite Milei’s bond with Trump and shared ideologies, his focus remains on revitalizing Argentina’s economy. Economists remain cautious, viewing this week as a milestone but acknowledging that sustained investor confidence is crucial for long-term stability.



Read more at Yahoo Finance: What does it mean that President Milei ended Argentina’s strict controls on currency and capital?