Earlier this week, Argentina’s Central Bank implemented new economic measures aimed at enhancing foreign currency reserves. The International Monetary Fund (IMF) has commended President Javier Milei’s administration for implementing recent strategies aimed at enhancing Argentina’s international reserves. Earlier this week, Argentina’s Central Bank implemented new economic measures aimed at enhancing foreign currency reserves in response to requests from the IMF. The measures encompassed a US$2-billion repo agreement with international banks.
In April, Argentina secured US$12 billion from the IMF, marking the initial disbursement of a total loan amounting to 20 billion dollars. On Monday, Buenos Aires initiated a new tender for debt that can be purchased in dollars and is payable in pesos. In May, it accomplished this, specifically for foreign investors, and raised US$1 billion. The government aims to secure US$7 billion by the year’s end through this new issuance. Consistent with its previous assessments since Milei assumed office in December 2023, the Fund has commended the economic strategies of Latin America’s third-largest economy.
In light of a more intricate global landscape, the authorities “have continued to make remarkable and impressive progress,” stated IMF spokeswoman Julie Kozack during a press conference on Thursday. She stated that the IMF would maintain “frequent and constructive” engagement with authorities in Buenos Aires as part of the initial review of the new agreement. “We welcome the recent measures announced this week” because “they represent another important step in efforts to consolidate disinflation, support the government’s financing strategy and to rebuild reserves,” she stated. Kozack specifically highlighted initiatives “to strengthen the monetary framework and improve liquidity management.”
“The Treasury’s successful re-entry into capital markets and other actions to mobilise financing for Argentina are also expected to boost reserves and stability overall,” said the financial organisation’s spokesperson, highlighting that the country’s stability is supported by the “implementation of a solid fiscal anchor.” Kozack also announced that “a technical mission will visit Buenos Aires at the end of June to assess progress on the programme’s goals and objectives and to discuss the reform agenda” as part of the first review of the loan.