Argentina: Forex Inflows Exceed Outflows For First Time Post-devaluation

Argentina’s foreign exchange inflows last year exceeded outflows for the first time since the country’s currency devaluation in 2001, producing a surplus of $1.2 billion. This follows a deficit in 2004 of $2.8 billion. The figures show increasing foreign investor confidence in the country as well as growing local belief in the economy. The figures show that many locals are returning dollars they had moved abroad or simply kept out of circulation since the peso’s crash. Meanwhile, FDI rose $500 million to $1.45 billion in 2005, compared with the previous year.