The new Conservative government in Argentina has wasted little time in making an economic break with the recent past by floating the peso and abandoning currency controls.
President Mauricio Macri wants to stimulate exports and investment, and rebuild foreign trust in Argentina’s economic policies. The move could herald a big devaluation. Based on the current blue-chip swap rate used to buy Argentine assets traded abroad, that could be as much as 30%.
Macri is a free-marketeer determined to boost economic growth. First to benefit could be farmers, particularly of soya, who have been stockpiling grain waiting for better export conditions.