Buenos Aires, Argentina (AP) – Tuesday International Monetary Fund has set the first part of Argentina $ 20 billion bailout After President Javier Milei Most of the harsh capital of Argentina and currency controls. Over the years, restrictions prevented the official exchange rate and companies and individuals by moving freely.
On Tuesday, the reserves in the Central Bank of Argentina reached $ 36.8 billion, gave money to the highest in two years Milei, firepower needed to lift the controls. The Injection of the Fresh Funds Managed a highly distorted foreign exchange market and managed the nation to the rebellion Follow the pain of brevity.
The US Treasury Secretary Scott Bessent is a press conference visiting, as the departments were removed from Mile on Monday, when the departments were removed, the Argentina version President Donald Trump’s “Freedom Day”.
“After the 15-year capital control, we closed that we were chained,” he said.
Argentines climbed to understand what it means to do this, to understand their radicals Libertariya President and a wider world.
What is currency control?
First, it was initially implemented during the populist leadership in 2011 President Cristina Fernández de KirchnerMore than half a critical rules limit access to the foreign currency as a protection against a capital flight.
The restrictions that are popular as “El Cepo” or “Trap” on Monday – were almost impossible for companies to earn the dollars abroad and the argentines. Foreign investments were dried. The Central Bank turned on with valuable currency resources to cover the peso, creating a large number of exchange rates and a wide black market.
Compared to the peculiar depreciation currency, compared to the peculiar depreciation currency, compared to the peculiar depreciation currency, 1,097 pesos sold their pesos to black market.
Milei protected the controversial exchange rate system with the so-called “creepy peq”, which is up to Monday, which prevents Peso from more than 1% in the month.
“It was a way to check a way to check the dollar, the depreciation will not be poured at the price,” Carlos Pagni, prominent Pagni, Tuesday, wrote on Tuesday, Argentina in La Nación. “From a political perspective, the Miley’s government made a commitment to a single issue – reducing inflation. This is the way to gain strength and increase its strength and increase it.”
Why leave ‘trap’?
Peso’s artificial pole to dollar was increasingly expensive to protect the Central Bank – $ 2.5 billion since mid-March.
“Protecting this example increased the sensitivity of Argentina,” said Risk Advice Medley Global Advisors Risk Consultant Hooded Ignacio Labaqui. “It was not good to have already served as an anchor against inflation and to collect reserves.”
Once the controls fall, Milei had to fill in the valuable low reserves of the Central Bank to prevent a possible run in Peso. Although I would not want to increase the exposure of the IMF The largest indebtedMilei hit a new line of credit after talks with months – $ 12 billion from the IMF, $ 12 billion, billions of multilateral banks and a $ 5 billion Credit exchange line with China.
By lifting the controls, the parallel exchange rate system, which allows Peso to be released in the initial range of 1000-1,400 peso per dollar.
Markets tied Peso with less volatility in the market for sellers in 3230 – dollars leave a narrow 7% gap with third market dollars, said Milei’s efforts to combine Miley’s rates.
How does this affect the usual argentines?
Milei, a $ 200 per month withdrawal has ended, 30% canceled taxes and other restrictions, to allow Argentines for bank accounts for the first time since 2019 Center Right President Mauricio Macri Revised the controls He said he was removed with victory A few years ago.
Argentines, Tuesday and Argentina’s currency value, the value of the Argentine currency is sold in Pesos sold to the dollar before falling further.
Some have removed the US currency, others closed the dollar to sell directly in an unofficial market. Along with television channels and news sites, online banking instructions and branches, people met people to meet large-scale bills.
However, many other Argentines, who have not had a bank account or deposits, said that political change means little.
“I know that there are people who are interested in buying and selling dollars and are people who face their descents and downs.” “We all have no money for it.”
Although Argentines can now get back as many dollars as they want from banks, they still can’t exchange more than $ 100 per month.
Distinguished amateur economists have strong views on the end of the people of Buenos Aires, which interviewed the streets of Buenos Aires.
“You can’t live with managing stock exchange rates,” Sad Maria Portela, 73, doctor utuu recipe. “I love freedom.”
How does this affect companies?
The most capital controls to companies in Argentina remain in place. Foreign firms will be able to earn a profit since 2025, but not earning benefits from previous years.
“In this sense, the exchange rate restrictions are a very positive step in terms of investing and growth,” Labaqui said. “When companies come to investing in the country, there must be a greater confidence.”
Control also increases exporters such as grain and soy farmers who are hobbled by the excessive peso.
“Tell the farmers that they must do it now,” Milei said at El Monday, El Monday.
What does it mean outside Argentina?
Bessent went to Buenos Aires on Monday on Monday Global market confusion now Trump’s tariffs For the praise Milei for shower.
After the meeting of Mileyi, the Treasury Secretary, who stands next to the United States, said that we felt about this new Argentine, “he said. He added: “In many ways, Miley and Maga shared a common way.”
In spite of Bond with Milei’s Trump The legacy of the leader of Argentina, the legacy of the Argentine leader, the legacy of the Argentine leader, the legacy of the Argentine leader, the crisis-stricken argentine depends on the power to provide a miraculous normal spread 22 past IMF programs collapsed For disaster and loans for 46 million nations and bondholders.
Economists agree to this This week is a stage for Milei However, they are also very early to declare that South America is the worst for the second largest economy in South America.
“If investors continue the same favorable views of the Prospects of Argentina, the work can be put on the feet.”
“But this is always a problem in Argentina, isn’t it?” He added. “It depends entirely about how the investors feel about how the country feels. And you can’t work as an economy like this.”
