Foreign Exchange Regulations and IMF Agreement
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Major Easing of Foreign Exchange Regulations and New IMF Agreement
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Argentina’s Ministry of Economy and Central Bank (BCRA) have unveiled a transformative update to the country’s foreign exchange framework, introducing a more flexible FX regime and announcing a set of landmark financing agreements with the International Monetary Fund (IMF) and other multilateral institutions totaling over USD 28 billion.
The Argentine FX system will now operate under a managed floating exchange rate with bands ranging from ARS 1,000 to ARS 1,400 per USD, subject to monthly adjustments.
In a significant policy shift, foreign exchange restrictions have been notably relaxed. Individuals are now free to purchase foreign currency without limitation, while corporations benefit from substantially improved access to foreign exchange for the import of goods and services, as well as for the distribution of dividends to foreign shareholders.
As part of a broader economic consolidation plan, Argentina has secured a new Extended Fund Facility with the IMF amounting to USD 20 billion — of which USD 15 billion will be disbursed as freely available funds throughout 2025. In addition, agreements with other international financial institutions will provide a further USD 6.1 billion in funding. The BCRA is also preparing to launch a new international repo facility of up to USD 2 billion to expand the repo program initiated in January 2025.
Lastly, Argentina has reached an agreement with the People’s Bank of China (PBOC) to extend the activated tranche of its bilateral currency swap line —currently equivalent to approximately USD 5 billion— for an additional 12 months.
These developments mark a strategic turning point for Argentina’s economic and regulatory landscape, offering renewed opportunities for investors, exporters, and multinational companies looking to expand or deepen their operations in the country.
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Privatization of four (4) Hydroelectric Power Plants
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Pursuant to Decree No. 263/2025, the National Government has officially initiated the sale of equity holdings in four local hydroelectric power facilities: Alicurá, El Chocón, Cerros Colorados, and Piedra del Águila, thereby advancing the intended privatization of these entities.
The Companies subject to privatization and hydroelectric complex are: (i) Alicurá Hidroeléctrica Argentina S.A. - "Alicurá" (1,050 Mw), currently operated by AES; (ii) Chocón Hidroeléctrica Argentina S.A. - "El Chocón-Arroyito" (1,417 Mw), operated by Enel; (iii) Cerros Colorados Hidroeléctrica Argentina S.A., "Planicie Banderita" (472 Mw), operated by Aconcagua Energía; and (iv) Piedra del Águila Hidroeléctrica Argentina S.A., "Piedra del Águila" (1,440 Mw), operated by Central Puerto.
The Decree mandates a 15-day period for the initiation of a National and International Public Bidding. The Agency for the Transformation of Public Enterprises will be responsible for the preparation and approval of all bidding documents and ancillary documentation required to execute the privatization process.
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Tourism: Bid for concession in San Martín de los Andes
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Bidding for Chapelco Ski Centre and Resort in San Martín de los Andes, Neuquén
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On March 25, 2025, Governor of Neuquén enacted Decree No. 316/2025, thereby initiating a national and international tender for the 25-year concession of the Ski Center Chapelco.
The call for the bidding was published on March 28, 2028, stipulating that proposal submissions are due by April 28, 2025, at 13:00 hours. Parties interested in participating in the tender may formally request the tender documentation beginning April 1, 2025.
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Import Tariffs on Clothing and Textiles Reduced
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The National Government has reduced import tariffs on clothing, footwear, yarns, and fabrics. According to Decree No. 236/2025, the tariff on apparel and footwear will drop from 35% to 20%, fabrics from 26% to 18%, and yarns from 18% to rates between 12% and 16%.
The instituted measure intends to align domestic prices with regional benchmarks. Historically, the textile industry has been subject to significant economic protectionism, thereby restricting foreign competition. Authorities anticipate that the revised tariffs will cultivate new avenues for investors and importers within a more deregulated market environment.
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Tender for Gas Pipeline Expansion from Vaca Muerta
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The National Government has commenced the tender process for the expansion of the Perito Moreno Gas Pipeline, a critical infrastructure initiative aimed at augmenting natural gas transportation capacity from the significant Vaca Muerta formation.
The Secretary of Energy has endorsed the regulatory framework authorizing Transportadora de Gas del Sur to increase the pipeline's capacity by 14 million cubic meters per day (MMm³/d), augmenting the existing 21 MMm³/d. This expansion necessitates the construction of novel compression plants and supplementary pipeline sections. The state-owned entity Energía Argentina S.A. shall assume responsibility for initiating the tender process to award the construction contracts.
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New Infrastructure Project
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With an investment of more than USD 1.500 million, the “Meridiano 68” project seeks to reduce logistic costs and connect mining deposits with key ports in a large part of the country.
It is a project conceived by the Argentine Railway Institute that Marcelo Orrego, current governor of San Juan, took and drafted as a bill when he was a congressman. Its objective is to improve and modernize the logistics system, facilitating the transportation of essential inputs to and from mining areas, and significantly reducing logistics costs and times in Argentina.
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