Argentina Moves Toward Full Currency Liberalisation as Central Bank Signals End of Exchange Controls

Argentina is actively moving toward full currency liberalisation as its Central Bank has announced the imminent end of remaining exchange and capital controls, marking a significant shift in its monetary policy for 2025.​

Key Developments

• In April 2025, Argentina’s government began dismantling major currency controls known as “el cepo,” which had strictly limited access to foreign exchange since 2019.​
• The Central Bank set a new managed floating exchange system, allowing the peso to trade freely within a band of 1,000 to 1,400 pesos per dollar, with the band expanding by 1% monthly.​
• Individuals and companies can now buy dollars without prior authorisation or limits, and exporters can freely access and repatriate profits and foreign currency.​
• The government eliminated the previous $200-per-month cap for buying U.S. dollars and removed reverse withholding taxes on currency purchases and certain imports.​

Reasons Behind Liberalization

• The move is part of an agreement with the International Monetary Fund (IMF), which approved a $20 billion financing package to strengthen Argentina’s reserves and support broader economic reforms.​
• Officials argue currency liberalisation will restore financial freedom, improve investment conditions, and help stabilise Argentina’s economy amid high inflation and depleted reserves.​
• The liberalisation is expected to generate market volatility initially but is positioned as essential for long-term economic predictability and growth.​

Outlook and Implementation

• All remaining restrictions, including those that limited cross-market currency trading, are being eliminated as part of the Central Bank’s “phase 3” reform program.​
• The reforms aim to normalise the exchange regime and encourage competitive financial markets, domestic savings, and productive investment.​
• With the new system in place, officials expect monthly inflation to drop below 1% by mid-2026, eventually stabilising the peso and the broader economy.​

Argentina’s shift marks the most significant liberalisation of its currency regime in decades, opening the country to global capital flows, greater investment, and economic transformation.​

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