Buenos Aires, Argentina – The International Monetary Fund (IMF) has approved a review of its program with Argentina, a move that includes relaxing the country’s international reserve targets and a clear endorsement of President Javier Milei’s economic policies. This crucial decision has resulted in a USD 2 billion disbursement to Argentina, and the IMF has praised the “positive performance” of the government’s fiscal policy, the halt on monetary emission, and the progress in reducing inflation.

Despite Argentina’s net reserves being USD 4.7 billion below the original target, the IMF granted a waiver due to the “corrective measures implemented” and the new “multifaceted strategy for reserve accumulation.” The new agreement adjusts the reserve targets, making them less demanding in the short term, but maintains an ambitious goal for the end of Milei’s term in 2027.

The IMF also praised the government’s fiscal approach, which achieved a primary surplus ahead of schedule. Furthermore, it noted that the process of building reserves will continue with the support of privatizations, asset sales, and official creditors, which underscores the IMF’s confidence in this strategy. The fund also commended the move towards a more flexible exchange rate regime and advised the Central Bank to take a more active role in accumulating reserves, similar to countries like Chile, Colombia, and Mexico. Lastly, the IMF addressed structural challenges, such as the need to avoid an excessive reliance on short-term capital flows.