Argentina’s hyper-liberal government announced on Friday that strict monetary regulations have been greatly relaxed after the International Monetary Fund (IMF) secured a new billion-dollar loan.
Economy Minister Luis Caputo said individuals in Argentina will be allowed to purchase unlimited dollars to remove the monthly cap of $200.
The official exchange rate will be transferred from a fixed system to a flexible system, allowing the peso to fluctuate within a set range according to market demand.
The decision comes after the International Monetary Fund approved a $20 billion bailout plan for Argentina.
Argentina is the IMF’s largest debtor and already owes the fund more than $44 billion. Now, new loans are applied to pay interest payments to the IMF and increase the central bank’s monetary reserves.
The country’s right-wing liberal president, Javier Milei, took office in December 2023, embarked on radical reforms. Thousands of civil servants were fired and social plans were greatly reduced.
Although his austerity measures have greatly reduced inflation, they have also stifled the economy and sparked massive protests nationwide. In this country where there was a shortage, more than 50% of people now live below the poverty line.
