Argentina Receives Record Foreign Currency, Boosts Reserves

Buenos Aires: Argentina began receiving in April 2026 an extraordinary flow of foreign currency that analysts estimate could exceed $30 billion over the next six months, according to Bloomberg, giving President Javier Milei his best opportunity yet to rebuild international reserves of the Central Bank of Argentina (BCRA).

The inflow of foreign currency is explained mainly by the arrival of the main grain harvest (soybeans, corn, and sunflower) from the 2025/2026 agricultural cycle, as well as the acceleration of oil and gas exports from the Vaca Muerta formation in the province of Neuquén. Milei's Large Investment Incentive Regime (RIGI), which offers 30-year tax stability and free profit repatriation for projects exceeding $200 million, has attracted investment commitments exceeding $6 billion.

Persistent Challenges: Inflation and Presidential Approval

However, the economic outlook is not without clouds. The US war against Iran impacted international fuel prices, threatening Milei's promise to bring monthly inflation below 1% by mid-2026. According to Bloomberg, monthly inflation was 2.9% in February, above market consensus. The presidential approval rate fell to 36% in March, the lowest level since Milei took office in December 2023.

Structural Reforms Approved

On the positive side, the Argentine Senate approved the labor reform on February 27, 2026, with 42 votes to 28, following prior approval by the Chamber of Deputies 135 to 115. The reform seeks to reduce labor informality, which reaches 42% of the workforce. The day before, the Senate had approved the Mercosur-European Union agreement by 69 votes to 3, becoming the second bloc country to ratify it.