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Will Argentina lift capital controls?

The Argentine peso’s overvaluation is becoming an increasing point of concern and attention has shifted to whether the Milei administration will lift capital controls. We think that some form of easing of restrictions, such as the scrapping of taxes on FX transactions, is likely in the coming months. But for capital controls to be fully lifted, much more progress on reserve accumulation, the fight against inflation and probably also a restructuring of Argentina’s external debt is needed.

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