Argentina’s Macri Returns to the IMF

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On May 8, 2018, Argentine President Mauricio Macri went to the International Monetary Fund for help as a “preventative” measure after the nation’s currency plummeted amid high inflation and rising U.S. interest rates. In recent weeks, investors have fled Argentina, driving up demand for U.S. dollars, and pushing the peso down. Argentina asked for “stand by” financing “with exceptional access,” which denotes a level above the normal loan the IMF provides. The move came 17 years after Argentina defaulted on its debt, and 12 years after it cut ties with the IMF as severe market turbulence rocked Latin America’s third-largest economy. Given the generally negative feelings that prevail in Argentina regarding the IMF, the move was somewhat surprising and risky politically. Editorial and pundit opinion varied considerably.

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