Enthusiasm for Argentine assets has been muted since mid-year 2016. Blame the economic outlook. Foreign investors are concerned that an upward growth trajectory will be derailed by steps to combat roaring inflation. But an equally-important technical obstacle has been a holding-period requirement for inbound investment. The regulation was rolled out in 2005 to limit speculation; it was modified from 12 months to four months in the early days of the Macri administration; the demand was lifted altogether this week. The policy move was expected, but it still represents a major milestone for a nation that was a capital-market pariah under its previous regime. Setting the stage for 2017, the ability to freely buy-and-sell assets should jump-start inflows from large-scale institutions, further validating the reform-oriented government. ■
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