IMF Reaches Staff Agreement on Argentina's First EFF Review
Above: The logo of the International Monetary Fund on the conference building in Washington, D.C., on Oct. 24, 2024. Image copyright: Soeren Stache/picture alliance/Getty Images
The Spin
Narrative A
Argentina has made a solid start on its EFF arrangement. Through strong fiscal policies, flexible exchange rate controls and re-entry into international capital markets, Argentina is on its way to becoming a market-oriented economy, with falling inflation and poverty, and corresponding economic growth.
Narrative B
Despite Argentina’s initial progress, the country still faces significant structural economic issues, most notably regarding its external position. While net reserves rose by $6 billion in 2024, they remain critically low, with reserve coverage remaining inadequate. Argentina must address this promptly to secure future prosperity.