Argentina lifts currency controls, Peso to float

FXStreet (Córdoba) - Argentina’s new Finance Minister Alfonso Prat Gay announced Wednesday the government is lifting a series of capital restrictions known as “cepo” and it will allow Peso to float in and administrated range (dirty float).

Along with this measures, Prat Gay said there will be a “unique” exchange rate for all economy operations. The government also removed most taxes on exportations, except for soybeans.

Analysts expect the official exchange rate, currently around 9.8 pesos to the dollar, to eventually weaken to closer to 15, which was the value of the black market known as “blue”. This will lead to the largest currency devaluation since the 2002 Argentinian crisis.