Argentina Records $882 Million Profit Outflows as Q1 Dollar Purchases Hit $6.6 Billion
Updated
Updated · Counterview · May 30
Argentina Records $882 Million Profit Outflows as Q1 Dollar Purchases Hit $6.6 Billion
1 articles · Updated · Counterview · May 30
March 2026 profit and dividend outflows reached $882 million in Argentina, the highest monthly level since 2010 after exchange liberalization reopened access to the FX market for non-resident shareholders.
BCRA data show the shift accelerated after April 2025 rule changes: average monthly profit outflows jumped from $24 million in Dec. 2023-Dec. 2024 to $333 million in Q1 2026, led in March by energy at $460 million.
Q1 2026 foreign-currency purchases by the non-financial private sector totaled $6.643 billion, extending a surge that began after limits on individual and corporate FX buying were lifted and already exceeded the previous administration's full-term total.
Since December 2023, Argentina posted a $47 billion trade surplus and received about $46 billion in external financing, yet reserves rose only $14.7 billion as interest payments, dividend remittances and private dollarization absorbed roughly $78 billion.
The report argues the pattern leaves Argentina with lower country risk—around 500 basis points, the lowest since June 2018—but at the cost of higher debt and weaker room for domestic investment and policy autonomy.
As Argentina's economy shows signs of recovery, why is its wealth flowing out faster than ever?
Will Milei's new investment law rescue Argentina's economy or just accelerate a national sell-off?
Argentina’s Q1 2026 Economic Turnaround: Record Reserve Accumulation, Surging Trade Surplus, and the Risks of Rapid Liberalization
Overview
In the first quarter of 2026, Argentina experienced significant profit and dividend outflows, with March reaching the highest level since 2010, mainly driven by the energy sector. At the same time, the Central Bank focused on building up reserves, achieving a notable streak of dollar purchases and boosting confidence in the economy. These developments occurred alongside policy shifts under President Milei, who prioritized reserve accumulation before easing capital controls. The combination of strong export growth, especially in mining and energy, and cautious liberalization has helped stabilize Argentina’s economy, though challenges like inflation, poverty, and political uncertainty remain.