Argentina eased currency controls and exporters improved the exchange rate by nearly 8% on the first day

Argentina eased the currency controls that involved a regulated official exchange rate which devalued 1% per month, alongside several alternative exchange rates. Replacing that policy, the government established a dollar trading band between AR$ 1,000 and 1,400, within which the value can fluctuate without official intervention. This move was made possible thanks to the agreement with the IMF announced last Friday, which granted a US$ 20 billion loan, including US$ 12 billion in freely available funds to strengthen Argentina’s reserves and support the new measure.