Easing the reserves accumulation target was part of the fourth review under the country’s $44 billion program, with Argentina looking to soften expectations on its economic performance.
The IMF board “approved modifications to the reserve accumulation targets to partially accommodate the impact of the severe drought,” the fund said in a statement, without detailing the new targets.
The change in the targeted reserves lowers the bar for the South American economy to pass future IMF reviews. The current review, based on targets through December, was “met with some margin,” according to the fund.
But weighing on further forex accumulation, Argentina’s central bank sold in March the largest monthly amount of dollars since October 2019 as it struggles to prop up the local peso currency.
The argentine peso, on a crawling peg to the dollar, is down 15% this year versus the U.S. currency.
On Friday, JPMorgan had further downgraded its view…
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