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2025-12-16 07:28:31
[Argentine Central Bank Announces Easing of Peso Exchange Rate Controls] 1. The Central Bank of Argentina announced on Monday that it will take action to allow the peso to fluctuate more flexibly in response to market investors' concerns that the current exchange rate is overvalued. The Millais government has not adopted the model of allowing currencies to float freely, as seen in the United States and other countries, but instead allows the peso to trade freely within a range with upper and lower limits. 2. Under the new policy, starting next year, the width of this trading range will expand monthly based on the monthly inflation rate (e.g., 2.5% in November), whereas previously the monthly expansion rate was only 1%. The Central Bank of Argentina stated in a statement that this move is part of its new monetary policy framework, and will also launch a program aimed at increasing foreign exchange reserves. The bank expects foreign exchange reserves to increase by $10 billion to $17 billion next year. 3. The International Monetary Fund (IMF) welcomed the Argentine Central Bank's new monetary policy and efforts to rebuild its foreign exchange reserves. The IMF has provided Argentina with tens of billions of dollars in loan assistance.
