April 18th, 2025
1. The government announced the elimination of the exchange rate hedge
Last Friday, the national government announced the approval of the agreement with the International Monetary Fund (IMF) and the beginning of Phase 3 of its economic plan, which included the lifting of the exchange rate ceiling as from Monday, and a new exchange rate scheme, consisting of a managed floating band between bands of $1000 and $1400. It did so, at the same time, simultaneously through a statement issued by the Central Bank of Argentina (BCRA), and a press conference held by the Minister of Economy, Luis Caputo.
BCRA: Inicio de la Fase 3 del Programa Económico con flexibilización cambiaria y flotación entre bandas
2. The government announced important changes for imports
In line with the lifting of the foreign exchange restrictions, the Central Bank announced that it will release the restrictions for foreign investors seeking to repatriate profits to their parent companies for new investments, while dividends and profits that have been included in the restrictions may find a new Bopreal bond in dollars as an “exit.”. With this instrument, the Government government will also seek to continue eliminating pesos from the economy. The monetary authority assured stated that the main purpose of this decision is to create a more favorable regulatory framework for the entry of capital and its subsequent channeling to local financial instruments. The release of the repatriation tax for new investments will require a minimum permanence period of 6 six months, which must be verified by the financial entity that carries out the entry operation. Likewise, the nNational Government government repealed the requirement of the Used Goods Import Certificate, a procedure that restricted the entry of used machinery into the country. From now on, companies will be able to import used capital goods without the need to carry out a previous procedure or to have a state authorization.
Infobae: Oficializaron la simplificación de la importación de bienes de capital usados por los reclamos de EEUU
BCRA: El BCRA flexibiliza las normas de acceso al MLC para inversores no residentes y emitirá un nuevo BOPREAL
3. Guillermo Francos presented his third management report in Congress
The Chief of Cabinet, Guillermo Francos, presented his third management report before the Chamber of Deputies. During his presentation, Francos defended the Government’s economic course, detailing a three-stage plan to eliminate the fiscal deficit, reduce the monetary issue and advance in the exit of the exchange rate hedge. He also highlighted the IMF for US$ 20 billion and additional financing from the World Bank and the IDB for US$ 3.6 billion. Among the relevant announcements, Francos reported a modification in INDEC’s CPI methodology, with a higher weight to services such as housing and transportation, and a lower incidence of goods such as food and clothing. This decision could impact on the way inflation is measured. In addition, he avoided answering about the $Libra case, which will be dealt with in a special session on April 22. The session in Deputies ended abruptly after incidents outside the Congress, where there were demonstrators in conflict with security forces, which led the Union for the Homeland block to withdraw from the premises as a sign of protest.
Ámbito Financiero: Guillermo Francos le reclamó al Congreso la ley Anti-Barras y la baja de la edad de imputabilidad
4. Santa Fe provincial elections were held
On April 13, 2025, the provincial elections were held in Santa Fe, where the 69 conventions that will reform the Constitution were elected. The ruling front Unidos para Cambiar Santa Fe, led by Governor Maximiliano Pullaro, obtained a resounding victory with 34.61% of the votes, positioning itself as the most voted force in the 19 departments of the province. In spite of this triumph, Unidos para Cambiar Santa Fe reached 33 out of the 35 members of the Assembly necessary to obtain the majority in the Constituent Assembly, which will force the ruling party to negotiate with other political forces to advance in the proposed reforms. In second place was Peronism, represented by Juan Monteverde, followed by Nicolás Mayoraz of La Libertad Avanza and Amalia Granata, who also had an outstanding participation. Voter turnout was 55%, a level considered low for this type of elections.
La Nación: Elecciones en Santa Fe – Mapa de resultados de las constituyentes provinciales
5. US Treasury Secretary Scott Bessent, met U.S. Treasury Secretary, held a meeting with President Milei and Minister Caputo
Last Monday, U.S. Treasury Secretary Scott K. H. Bessent met with the President of Argentina, Javier Milei. During the meeting, Secretary Bessent reaffirmed the full support of the United States for President Milei’s economic reforms and commended him for his government’s early decision to reduce barriers to reciprocal trade with the United StatesU.S. The Secretary secretary also congratulated the President president on Argentina’s recent successful negotiations with the International Monetary Fund (IMF), and underscored U.S. confidence that President Milei will continue to advance the positive trajectory of Argentina’s economy. He also held a meeting with his counterpart in Argentina, Minister of Economy Luis Caputo.