The International Monetary Fund (IMF) said that Argentina remains “firmly on track” in its eighth review of the economic program, but stressed that the country should devalue its currency faster and lift exchange controls. The staff report, published on Monday, examined the application of the Fund-mandated economic program in the first three months of the year and enabled a disbursement of around US$800 million. However, last week Economy Minister Luis Caputo said in a post on X that the scheme, also known as “dollar blend,” would remain untouched. Last week, Caputo promised to undo the increase if the government’s flagship Ley Bases bill gets approved. The government also promised to unify the exchange rate “as conditions permit” to transition into a new monetary regime called “currency competition,” without offering further details on how it would work.

Source: Bueno Aires Herald June 19, 2024 11:28 UTC