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# Argentina's Banco Central Moves to Floating Exchange Rate Regime and Lifts Capital Controls Under IMF Deal
- URL: https://www.theglobalbanker.com/argentina-banco-central-floating-exchange-rate-lifts-capital-controls-imf-deal/
- Published: 2025-04-11T13:21:00.000Z
- Updated: 2026-10-28T10:21:32.000Z
- Description: Argentina established a managed exchange rate band of ARS 1,000–1,400 per US dollar and substantially lifted long-standing currency restrictions as part of a new IMF Extended Fund Facility.
- Author: TGB Editorial Team
- Tags: Central Banks, Americas, #archive

The Banco Central de la República Argentina announced on 11 April 2025 that it would move to a floating exchange rate regime underpinned by a managed band, setting the peso's permitted trading range at ARS 1,000 to ARS 1,400 per US dollar. The shift arrives alongside a substantial lifting of the country's currency restrictions, known domestically as the cepo cambiario. The announcement accompanied the confirmation of an Extended Fund Facility agreement with the International Monetary Fund, also announced on 11 April 2025.

The cepo cambiario had imposed a web of controls that forced exporters to surrender foreign-currency earnings at official rates, prevented most individuals from freely purchasing dollars, and created a substantial and persistent gap between the official exchange rate and rates available in parallel or informal markets. 

#### THE MANAGED BAND MECHANISM

Under the new regime, the central bank will permit the peso to fluctuate freely within the established band of ARS 1,000 to ARS 1,400 per dollar. If the rate reaches either boundary, the central bank will intervene to keep it within range, giving the arrangement the character of a managed float rather than a purely free-floating system. The band's upper and lower limits will widen at a rate of 1% per month.

#### IMF AGREEMENT

The Extended Fund Facility provides Argentina with access to external financing in exchange for adherence to an agreed economic reform programme. The programme's requirements include maintaining exchange rate flexibility, rebuilding international reserves, and maintaining a fiscal surplus.