Caputo announces US$20-billion IMF deal, end to exchange controls

President Javier Milei's government said Friday it had agreed with the International Monetary Fund to a loan of US$20 billion and the elimination of foreign exchange controls.

The loan, which must still be formally greenlit by the lender's board, will allow the "recapitalisation of the Central Bank... and continue the disinflation process," Economy Minister Luis Caputo told reporters, and lead to "the end of currency controls" starting Monday.

In the place of exchange controls, in place since 2019, the peso will be allowed to float within a band of between 1,000 and 1,400 pesos to the dollar, the Central Bank added in a statement.

The US$200-per-month limit on residents accessing greenbacks will also be lifted, it said.

The nation already owes the IMF US$44-billion under a 2018 loan agreement – the lender's biggest ever – on which it has since renegotiated the repayment terms.

Milei, who took office in December 2023, has sought a new loan to cancel Treasury debt to the Central Bank, wipe out stubborn inflation, boost growth and replenish foreign reserves.

– TIMES/AFP