Negotiations between Argentina and the International Monetary Fund (IMF) regarding the country’s economic program are taking place in Washington, D.C., amid official secrecy and strong media speculation. The IMF staff’s upcoming fifth review of the program will evaluate Argentina’s performance until March which, if favorable, would lead to a US$4.1 billion disbursement. Amid the negotiations and the reserve scarcity crisis — net international reserves are estimated at negative US$7.4 billion — the government further restricted access to US dollars in the official market for imports. Four worst-case scenariosIn a report published on Thursday, economic consulting firm 1816 listed four possible outcomes of the current negotiations with the IMF. The final (and less likely) scenario is an agreement with the Fund that includes a devaluation of the peso.

Source: Bueno Aires Herald July 21, 2023 06:24 UTC