World Economy

Argentina Ends Forex Controls

Argentina Ends Forex Controls Argentina Ends Forex Controls

Argentina’s national currency has plunged after a government move to scrap foreign exchange restrictions in place since 2011, DW reported. The devaluation came as a shock to many, but analysts hoped for long-term benefits. Argentina’s peso plunged about 30% of its value against the greenback at the start of trade on Thursday a day after the government had announced it would float the currency as part of a larger package of measures to crank up free-market reforms. The peso’s plunge was the biggest one-day devaluation of the country’s national currency in decades and shocked average consumers as they saw their purchasing power fall rapidly within hours. Experts said the big winners of the devaluation were farmers in the Pampas grains belt who would start getting paid in stronger US export dollars. Argentines were set to buy dollars denied to them by the former government since 2011 when policymakers clamped down on access to the greenback in a bid to protect central bank reserves.