14 Apr, 2025

Argentina Announces End of Currency Controls and Introduces Exchange Rate Band

The Argentine government announced a sweeping overhaul of its foreign exchange regime, set to take effect on Monday, including the end of currency controls and the introduction of a managed float within a fixed exchange rate band. The move marks the beginning of what authorities are calling “Phase 3” of their economic program.Economy Minister Luis Caputo said in a press conference at the Casa Rosada that the official exchange rate will now float between 1,000 and 1,400 pesos per US dollar, with monthly adjustments of 1% to both the floor and ceiling. The Central Bank (BCRA) will intervene only if the rate hits either extreme of the band.“This marks the start of the Central Bank’s recapitalization phase,” Caputo said. “It allows us to support the pesos in circulation and move towards full monetary stability.”The reforms follow a new $20 billion agreement with the International Monetary Fund, of which $15 billion will be freely available to the government in 2025, Caputo confirmed.End of capital controlsFor the first time in six years, individuals will be allowed to purchase US dollars freely at the official rate, as the government abolishes the long-standing “cepo cambiario” that had capped monthly purchases at $200. The Central Bank also removed tax penalties and restrictions linked to previous pandemic-era subsidies and public employment.”The restrictions outlined in Communication A 7340 and the so-called ‘cross restrictions’ will no longer apply to individuals,” the Central Bank said in a statement.Elimination of the “dólar blend”The government will also scrap the “dólar blend” system, which had allowed exporters to sell 20% of their foreign currency earnings on the parallel market at a more favorable rate. All export revenue will now be settled through the official market, though timelines for currency liquidation remain unchanged.Officials said the move would simplify Argentina’s currency framework and enhance liquidity in both spot and futures markets for foreign exchange and commodities.Market Reactions and OutlookWhile the official dollar rate closed at 1,078 pesos on Friday, the BCRA will now act as a buyer if the rate falls to 1,000 or below and as a seller if it hits or exceeds 1,400. These interventions aim to accumulate reserves or absorb excess liquidity, depending on demand for pesos.The government hopes the changes will restore confidence in Argentina’s monetary system and pave the way for macroeconomic stability. Analysts, however, remain cautious about the country’s ability to sustain the new framework amid political and inflationary pressures.Argentina’s currency reforms come amid broader efforts to stabilize the economy following years of crisis, chronic inflation, and capital flight.

09 Apr, 2025

Vientiane Province Welcomes Over 900,000 Tourists in First Quarter of 2025

In the first quarter of 2025, Vientiane Province attracted a total of 902,057 visitors, including 416,232 domestic tourists and 485,825 international arrivals, said Sengkeo Sounthavongsa, The Deputy Director of the Department of Information, Culture and Tourism of Vientiane Province on 4 April.This surge in tourism generated over LAK 754 billion (USD 34.8 million) in revenue. Key tourist hotspots during this period included Ang Nam Ngum 1 in Keo Oudom district, the key tourism hotspot of Vang Vieng, and the natural Feuang district. Behind this success was the coordinated effort between provincial authorities, local businesses, and community stakeholders to strengthen the tourism sector. This included improving tourism infrastructure, diversifying experiences, and solving development challenges across the province.Currently, Vientiane Province hosts 1,053 licensed tourism-related businesses and 238 tourist attractions, 62 of which are currently operational.The quality of tourism services in the province has also seen measurable improvements. Six local tourism businesses received ASEAN Tourism Standard awards in 2024. One hotel has been recognized as 5-star, two as 4-star, and 14 businesses have met national tourism certification standards.Cultural events and traditional festivals also played a significant role in attracting tourists, Sengkeo said. In 2024, Vientiane Province recorded a total of 1,9 million tourist visits, generating over LAK 1,372 billion (USD 63.33 million) in income. The province has set its sights on attracting over 2 million tourists in 2025, with a projected tourism income of no less than LAK 1,820 billion (USD 83.91 million).