Argentina’s ultra-liberal government on Friday announced a major easing of its strict currency controls following the approval of a fresh billion-dollar loan from the International Monetary Fund (IMF).<\/p>\n
Economy Minister Luis Caputo said individuals in Argentina will be allowed to buy unlimited amounts of US dollars, scrapping a previous cap of $200 per month.<\/p>\n
The official exchange rate will shift from a fixed system to a flexible one, allowing the peso to fluctuate within a set range based on market demand.<\/p>\n
This decision follows the IMF’s approval of a $20 billion bailout package for Argentina.<\/p>\n
Argentina is the IMF’s largest debtor and already owes the fund more than $44 billion. The new loans are now to be used to cover interest payments to the IMF and to increase the central bank’s currency reserves.<\/p>\n
The country’s right-wing libertarian President Javier Milei, who took office in December 2023, has initiated radical reforms. Thousands of civil servants were dismissed and social programmes were massively cut.<\/p>\n
While his austerity measures significantly reduced inflation, they also stifled the economy and sparked mass protests across the country. In this once-affluent country, now more than 50% of people live below the poverty line.<\/p>\n<\/div>\n<\/div>