The reserve accumulation target set by the International Monetary Fund (IMF) under Argentina’s recently approved USD 20bn financing program is achievable, as the lifting of FX restrictions will incentivize export liquidation and FDI, according to a London-based economist, a buyside source and a Morgan Stanley research report.

Nonetheless, the success of the Extended Fund Facility (EFF) program will depend on the impact of the international context on Argentina’s macro conditions and on the path of the country’s disinflation process amid an expected FX depreciation, a sovereign analyst and the buyside source said.