Argentine peso weakens 2% after central bank eases FX controls

Argentina’s peso fell 2% on Thursday after the central bank unexpectedly relaxed capital-control measures to attract foreign investment inflows. The easing allows exporters to retain a higher share of foreign-exchange earnings, while importers face looser documentation rules. Bond yields rose as traders anticipated faster reserve depletion. Economists warned that inflationary pressures could re-emerge without corresponding fiscal discipline. The move followed government efforts to balance market confidence with economic recovery ahead of the next IMF review scheduled for November.