Would a ‘Flexible’ Exchange Rate Benefit Argentina?

On October 30, Our Chief Specialist Macarena Michienzi was featured in the Latin American Advisor, where she provided insight into the elimination of foreign exchange controls in Argentina and its implications for foreign investors.

In her take, Michienzi highlighted that although the elimination of foreign exchange controls is a key measure for economic growth, especially in capital and FDI intensive sectors, Milei has shown no urgency in lifting the restrictions, opting instead for a gradual approach to ensure a smooth transition to a flexible foreign exchange market to reduce the possibility of destabilizing other macroeconomic variables.