Latest news with #LuisCaputo
CTV News
27-05-2025
- Business
- CTV News
Argentina announces first peso-denominated debt sale in nearly a decade
A currency exchange house in Buenos Aires on April 14, after Javier Milei eased currency controls in Argentina. BUENOS AIRES, Argentina — Argentina on Monday unveiled the first sale of peso-denominated debt in nearly a decade in a high-stakes test of international investor confidence under budget-slashing President Javier Milei. The auction Wednesday will be for a maximum US$1 billion, the government said, as the South American country seeks to boost foreign reserves to meet International Monetary Fund loan requirements. The 'BONTE' will be a fixed-rate treasury bond in pesos, but can be purchased in dollars and matures in May 2030. 'Argentina regains access to international markets to refinance capital debt in local currency,' Economy Minister Luis Caputo wrote on X. Last month, Argentina received an initial $12 billion from a new $20 billion loan agreed by the International Monetary Fund (IMF). The injection from the IMF and others is crucial for replenishing Argentina's meager foreign reserves, reviving growth and tackling inflation -- a key focus for self-styled 'anarcho-capitalist' President Milei.
Bloomberg
26-05-2025
- Business
- Bloomberg
Argentina Claims Return to Global Markets With Peso Bond Sale
Argentina's government will issue a five-year bond denominated in pesos that's aimed at international investors who are allowed to purchase it in US dollars, a move the government hailed as its return to global markets after a sovereign restructuring during the pandemic. The May 28 auction is set to raise up to $1 billion, Finance Secretary Pablo Quirno posted on X Monday. Analysts quickly pointed out the bond will help accumulate the central bank's foreign reserves, while Economy Minister Luis Caputo described the auction as a milestone even though one of his deputies clarified it would be issued under local Argentine law instead of New York law like most international bonds.
Asharq Al-Awsat
12-04-2025
- Business
- Asharq Al-Awsat
Argentina Seals $20 Billion IMF Deal, Tears Down Currency Controls
Argentina sealed a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund on Friday and, in a major policy move ahead of the deal, dismantled key parts of its years-long currency controls and loosened its grip on the peso. The IMF will disburse $12 billion by next Tuesday, while another $2 billion will become available by June. The deal is expected to help Argentina "catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets," the IMF said. "Key pillars of the program include maintaining a strong fiscal anchor, transitioning towards a more robust monetary and FX regime, with greater exchange rate flexibility," it added in a statement. Earlier, the South American nation's central bank announced it would undo a fixed currency peg from Monday, letting the peso freely fluctuate within a moving band between 1,000 and 1,400 pesos per dollar, versus 1,074 at the close on Friday. Argentina will eliminate major parts of the so-called "cepo" capital controls that have restricted access to foreign currency, the central bank said in a statement. Companies, from this year, will also be able to repatriate profits out of the country, a key demand from businesses that could unlock more investment. "As of Monday, we will be able to put an end to the foreign exchange restrictions which were imposed in 2019 and which limit the normal functioning of the economy," Economy Ministry Luis Caputo said at a press conference. Libertarian President Javier Milei addressed the nation in a televised speech on Friday night and stated that Argentina was "in a better position than ever to withstand external turbulences." However, an IMF staff report on the $20 billion deal warned that "downside risks remain elevated," as program implementation could be challenged by rising global trade tensions and, domestically, by the volatility added by the upcoming electoral cycle and fragile social conditions. 'THIS IS A DEVALUATION' The new exchange rate system could allow the peso to weaken almost a third if the currency were to hit the weaker edge of the band, although the central bank is likely to have some tools to intervene. The band will expand 1% each month, the bank said. The policy move came ahead of the final IMF nod for what is the 23rd program in a long and mottled history between the grains-producing nation and the Washington-based lender. Funds from the IMF deal will be used to recapitalize Argentina's central bank and the government expects they will help usher in a healthier currency, reduce inflation and allow for tax cuts, Caputo said. Other multi-year disbursements were also announced, including $12 billion from the World Bank and $10 billion from the Inter-American Development Bank. Argentina needs the financial firepower to bolster depleted foreign currency reserves that are in the red on a net basis and have been falling in recent weeks, amid sticky inflation and a country risk index that has started to rise again. The funds are also key to unlocking the currency controls, which will likely prompt a period of local market volatility already stirred up by the international tariff war between the United States and its trade partners. "This is a devaluation, which rather goes against what the government would have intended to calmly get to elections," said economist Ricardo Delgado, referring to midterm legislative elections later in the year. "It's a bit surprising that at this time of global volatility, the controls are being lifted," he added.
South China Morning Post
12-04-2025
- Business
- South China Morning Post
Argentina tears down currency controls in major policy shift as IMF deal nears
Argentina is dismantling key parts of its years-long currency controls and loosening its grip on the peso, the central bank has said, a major policy move for the South American nation ahead of a US$20 billion IMF deal being finalised. Advertisement The central bank announced on Friday that it would undo a fixed currency peg from Monday, letting the peso freely fluctuate within a moving band between 1,000 and 1,400 pesos per dollar, versus 1,074 at the close on Friday. Argentina would eliminate major parts of the so-called cepo capital controls that had restricted access to foreign currency, the central bank said in a statement. Companies from this year will also be able to repatriate profits out of the country, a key demand from businesses that could unlock more investment. Economy Minister Luis Caputo says Argentina will on Monday end the foreign exchange restrictions that were imposed in 2019. Photo: AP 'As of Monday, we will be able to put an end to the foreign exchange restrictions which were imposed in 2019 and which limit the normal functioning of the economy,' Economy Ministry Luis Caputo said at a press conference on Friday evening. The new exchange rate system could allow the peso to weaken almost a third if the currency were to hit the weaker edge of the band, although the central bank is likely to have some tools to intervene. The band would expand 1 per cent each month, the bank said. The policy move comes as the country waits for the final green light by the International Monetary Fund board for the 23rd programme in a long and mottled history between the grains-producing nation and the Washington-based lender. That vote is expected later on Friday. Advertisement Argentina needs the financial firepower to bolster depleted foreign currency reserves , sticky inflation and a country risk index that has started to rise again.
Yahoo
31-03-2025
- Business
- Yahoo
Argentina requests first tranche of more than 40% under $20 billion IMF program
BUENOS AIRES (Reuters) -Argentina is seeking a first disbursement of more than 40% under a $20-billion program it is negotiating with the International Monetary Fund (IMF), Economy Minister Luis Caputo said on Sunday. The South American country had eliminated the fiscal deficit and cut public spending, Caputo reiterated, as the government aims to beef up central bank reserves, and begin unwinding forex curbs that arguably hinder business and investment. "We've requested more because, traditionally, these are made in exchange for monetary and fiscal targets," Caputo said in remarks on television, adding that first disbursements were usually between 20% and 30%. "We've already done everything." Last week, the government and the IMF confirmed the lender's board of directors must still approve the four-year program that follows one of $44 billion signed in 2018.
