Argentina-IMF-deal 2025
Argentina made a big deal with the International Monetary Fund (IMF) on Friday, April 11, 2025, for $20 billion over 48 months. Before the deal, the country removed some old rules that controlled its money, the peso, and let it change value more freely starting Monday, April 14. The peso will now move between 1,000 and 1,400 pesos per dollar (it was 1,074 on Friday), with the range growing 1% each month.
The IMF will give Argentina $12 billion by Tuesday, April 15, and another $2 billion by June. This money will help Argentina get more support from other countries and banks, and maybe borrow money from global markets again. The plan includes keeping finances stable and making the peso’s value more flexible.
Argentina is also lifting tough rules on using foreign money, called “cepo,” which started in 2019. From this year, companies can take their profits out of the country, which might bring in more business. Economy Minister Luis Caputo said this will help the economy work better. President Javier Milei said Argentina is now stronger against global problems.
But the IMF warned there could be risks, like trade fights worldwide and local issues from elections and social challenges later this year. The new peso range might make it worth much less—up to a third weaker—and the central bank might step in to help. The money will fix up the central bank, lower inflation, and allow tax cuts, Caputo said. Argentina will also get $12 billion from the World Bank and $10 billion from the Inter-American Development Bank.
The country needs this money because its foreign cash reserves are low and shrinking, with high inflation and rising risk. Lifting the controls might cause market ups and downs, especially with U.S. trade wars. Economist Ricardo Delgado called it a “devaluation” and said it’s surprising to remove controls now, with elections coming and global uncertainty.
Feel free to reach out to us. We’re always here to help and support: https://theeasterntimes.com/contact-us/
If you like the article share it.
Also connect with us on social media platform X: https://x.com/times_555
Leave a Reply