VOICED : Argentina elimina el cepo cambiario

Argentina is undergoing significant economic changes as the government lifts currency controls, allowing free purchase and sale of dollars. This decision follows a sharp devaluation of the peso, marking a shift from a gradual to a shock strategy. The Central Bank's previous strategy failed due to reserve losses and unmet inflation expectations. The government believes the recent devaluation aligns with its economic goals amid high inflation and competitiveness loss. The policy shift represents a departure from a decade of strict market intervention.

What major change did the Argentine government announce regarding currency controls?

• No change in currency controls

• Increase in currency controls

• Removal of currency controls

• Introduction of new currency controls

Why did the Argentine government decide to change its devaluation strategy?

• The previous strategy was too slow

• The previous strategy was not working

• The previous strategy was too fast

• The previous strategy was too effective

What was one of the reasons the Central Bank's strategy was not successful?

• It increased inflation expectations

• It reduced inflation expectations

• It had no effect on inflation expectations

• It stabilized inflation expectations

What economic conditions were present in Argentina during the recent devaluation?

• Low inflation and high competitiveness

• High inflation and loss of competitiveness

• High inflation and high competitiveness

• Stable inflation and high competitiveness

What measures did the Argentine government previously implement to prevent capital flight?

• Encouraging foreign investment

• Allowing free currency exchange

• Reducing taxes on foreign tourism

• Restricting dollar purchases and taxing foreign tourism