Milei’s Bid to Make Argentina Normal Again Deserves Support
Letting the peso move more freely and lifting currency controls is a huge step toward enabling the Argentine economy to flourish.
Making Argentina normal again?
Photographer: Tomas Cuesta/Getty Images South AmericaJust as things were starting to get complicated for Javier Milei, he pulled a rabbit out of the hat.
The announcement late Friday that Argentina is ending most currency controls while letting the peso float (within a range of between 1,000-1,400 pesos per dollar) is a crucial step to normalize an economy burdened by convoluted restrictions for far too long. The financial backing offered to the Milei administration by the International Monetary Fund and other multilateral organizations gives credibility to the new exchange rate arrangement, while the visit of US Treasury Secretary Scott Bessent to Buenos Aires together with the renewal of part of a Chinese currency swap line provides unprecedented geopolitical cover. Sovereign bonds rallied on Monday morning, a sign that the plan points in the right direction.