President Javier Milei and his economic team moved forward Friday with the country’s new economic phase, marked by an agreement with the International Monetary Fund (IMF) and the lifting of currency controls.
It's a move aimed at reassuring the middle class, which has long been anxious about the exchange rate and access to the US dollar. Uncertainty remains, however, over what exchange rate will prevail come Monday, when restrictions are lifted.
The Casa Rosada welcomed the outcome, noting that the alignment with Donald Trump’s administration had paid off, leading to an unprecedented initial disbursement from the Fund.
Alongside Milei's relationship with US President Donald Trump, Economy Minister Luis Caputo and his team made a point of highlighting their achievements in economic policy on Friday — particularly the fiscal surpluses — which ultimately helped seal the deal and turn the page for Argentina.
Now, the La Libertad Avanza government heads into an electoral process in which it hopes to secure public endorsement from voters.
The main criticism from economists and analysts had been that while the Milei administration moved swiftly on fiscal reforms, it had dragged its feet on access to currency, with controls remaining in place longer than expected. This not only created unease but also stood as an ideological contradiction for a liberal-libertarian government.
Now, the administration — which with the controls in place resembled a ship moored at port — faces the challenge of setting sail and navigating the swells caused by external economic shocks.
A new phase begins, with a more liberalised economy and a government betting that the IMF’s dollar cushion will be enough to prevent tremors. Everything remains to be seen.
by Santiago Pérez Chiconi, Noticias Argentinas
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