IMF ‘mountain of dollars’ key to unlock Argentina’s FX controls

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Buenos Aires: Argentina’s $ 20 billion contract with the International Monetary Fund will find Liberian President Jeveer Miley the device he wants to unlock the investment capital control and return to the global market: a “mountain of dollar”.

The country of South America, a serial defaulter that has fought for the economic crisis for decades, has been discussing with the IMF about its 23rd program, which aims to promote the country’s expired foreign currency reserves.

An agreement will give the government an opportunity to end currency control from 2019, while backing the IMF can help reduce the premium, Argentina has to pay for a new loan, which can potentially access global capital markets.

“What you will have is a mountain of dollars,” Miley said in March, mentioning the target of doubling the overall reserves with the IMF Lone and others, up to $ 50 billion. It targeted the end of the year to eliminate the FX controls, or soon if the IMF increased the payments.

“Currency control will no longer be present on January 1,” he said.

Reuters spoke to former IMF and government officials, and economists, who generally agreed that the IMF contract-which still needs board approval-will not help revoke Capital Control and gain access to capital markets, though it will not be night. It helps us to revive a worst economic economy to restore its worst economic economy through lithium. Donald Trump.

Last year, the annual inflation was close to 300 percent, with net reserves to minus $ 11 billion and poverty more than 50 percent when the country fell into recession. That measure is improving now, but the economy is about to break.

“His guarantee by the fund gives the government a good conduct conduct certificate,” he said, adding that it would increase investors’ confidence and help maintain a lid on inflation. “The threat of the country can be reduced, and then the government can approach the financial markets.”

Are borrowing more?

Miley promised to take “chainsu” in state spending to end the financial year deficit in December 2023. It has strengthened the economy and has reduced inflation.

There are signs that the economy is turning, but currency pressure has increased and reserves have declined in recent weeks. Former economy minister, with the opposition to Millen, Martin Gozman, said the threat of a new deal is that these funds will be used to easily slip in the money, and eventually the burden of maximum debt is created.

“The positive aspect of a new deal will be the re -financing of the IMF loan, which begins to become stronger in September 2026. The negative aspect is more debt,” Gozman, who replaced a failed 2018 program in 2022, and seal the $ 44 billion IMF’s agreement.

He added that this “unlikely” currency control will be removed soon as it will allow global firms to withdraw $ 9 billion, which was trapped in the country, and will put pressure on exchange rates and inflation.

However, a contract will explain more about the long -term FX government in the 1990s under Carlos Menium under the Carlos Menium, however, will explain more about the long -term FX government, will increase market access over the next four years, reduce the burden of debt, and “will pave the way for the exchange control.

“Finally, it allows us to return to the capital market … which will have a very positive impact on Argentina’s economy,” he said.