Argentina To Set Up Managed Float For Peso As Imf Deal Loom
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Argentina Secures $20B IMF Deal, Lifts Currency Controls
Above:Â Javier Milei during the Conservative Political Action Conference in Maryland on Feb. 22, 2025. Â Image copyright:Â Kent Nishimura/Contributor/Bloomberg via Getty Images
The Spin
Pro-government narrative
Removing currency controls represents a historic opportunity to normalize Argentina's economy and attract foreign investment. The IMF's substantial support will support the peso and create conditions for sustainable growth through market-oriented reforms.
Opposition narrative
The timing of lifting currency controls is risky amid global market volatility. The policy change could trigger a "tsunami of money out" as companies rush to repatriate profits, potentially leading to currency instability and higher inflation that would hurt the population already struggling with austerity measures.