IMF Staff Country Reports

Argentina: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, Rephasing of Access, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina

August 1, 2025

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Format: Chicago

International Monetary Fund. Western Hemisphere Dept. "Argentina: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, Rephasing of Access, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina", IMF Staff Country Reports 2025, 219 (2025), accessed August 2, 2025, https://doi.org/10.5089/9798229019224.002

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Summary

The new Fund-supported program has had a strong start. Appropriately tight fiscal and monetary policies have underpinned the smooth transition toward a more flexible exchange rate regime and the easing of most foreign exchange (FX) restrictions. Inflation and inflation expectations are firmly on a downward trajectory, the exchange rate has fluctuated around the midpoint of a widening band, and the gaps between the official and parallel exchange rates have largely been eliminated. Economic activity remains generally resilient, supporting a further reduction in poverty. Notably, Argentina has re-entered international capital markets well ahead of the timeline anticipated at the program’s approval. That said, reserve buffers are taking longer to rebuild, amid a widening of the current account deficit, given strong domestic demand and a sharp easing of import restrictions.

Subject: Central Banks, Currency markets, Exchange rate arrangements, Exchange rates, Exchange restrictions, External debt, Financial institutions, Financial markets, Foreign exchange, International capital markets, International reserves, Public debt, Securities

Keywords: Currency markets, Exchange rate arrangements, Exchange rates, Exchange restrictions, Inflation, International capital markets, International reserves, Securities

Publication Details

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