The success of exchange flexibility will depend on the entry of lasting investments and the strength of the reserves, said the risk rating.
In a strong context exchange pressure and expectations of macroeconomic stabilizationthe government of Javier Milei He took an important step by announcing a “partial” survey of exchange restrictions that governed for natural persons. This measure, which is part of a broader path towards the standardization of the change market, was interpreted by Moody’s as a key advance in the attempt to rebalance the external finances of the country.
According to the risk rating, “The partial survey of exchange restrictions to individuals is an important step that seeks to balance the external finances of Argentina After a fall in international reserves. ”Moody’s also stressed that the measures are framed in a gradual process of total elimination of the stocks, firmly supported by the International Monetary Fund.
What Moody’s said about reservations and exchange rate
The evolution of the level of international reserves remains an essential indicator to assess the sustainability of economic adjustment, while the new mobile band regime will be tested by the foreseeable increase in currency demand in the local market.
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In this sense, Moody’s warned that the success of the reforms will depend largely on the country’s capacity to attract long -term investments that replace the dependency of short -term financial capitals.
Finally, the qualifier assured that it will continue to closely monitor the process of flexibility of the stocks and capital controls, to evaluate its impact on the path of Argentina’s credit profile.
Source: Ambito
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