So far under the administration of La Libertad Avanza, total inflows have exceeded USD 15 billion, but economists warn that this is not enough to sustain the current exchange rate regime. Here’s how it compares with Massa’s term and the figures from the Large Investment Incentive Regime (RIGI).
Economic Team Seeks to Boost Argentina Foreign Investment
Following the legislative elections—won by the government—and under the assumption that the exchange rate regime faces no problems, the economic team led by Luis Caputo now wants to focus on attracting Argentina foreign investment to boost economic activity. According to the latest (BCRA), in the second quarter of 2025, total foreign direct investment (FDI) inflows reached USD 2.866 billion. This represented an increase compared with the first three months of the year, when inflows totaled USD 1.015 billion, and especially with the last quarter of 2024, when they barely reached USD 90 million. The rise was largely explained by reinvested earnings, which accounted for USD 1.684 billion of the total—the second-highest level in the year and a half of La Libertad Avanza’s administration, only surpassed by the first quarter of 2024, when reinvestments reached USD 2.347 billion. Below reinvested earnings were debt transactions (USD 1.457 billion), capital contributions (USD 977 million), and mergers and acquisitions, which subtracted USD 1.252 billion.
Economists Warn Current Inflows Are Insufficient
“Current levels of foreign direct investment are low relative to what this economy needs,” said Lucio Garay Méndez, an economist at Eco Go, noting that a low real exchange rate is turning the current account negative. Given the foreign-currency debt maturity profile and the level of the Central Bank’s net reserves, he emphasized that higher levels of Argentina foreign investment are needed to strengthen the capital account — if the government intends to maintain the current exchange rate framework. “From a monetary program perspective, if the aim is to remonetize the economy through peso issuance resulting from foreign currency purchases, it’s unlikely that the current account will supply those inflows until April. In the meantime, higher foreign direct investment is necessary,” he added.
Comparing FDI Flows Between 2023 and 2025
Between January 2024 and June 30, 2025, foreign capital inflows totaled USD 15.528 billion (USD 11.647 billion in 2024 and USD 3.881 billion between January and June 2025). In comparison, 2023 saw inflows of over USD 24 billion. However, according to Garay Méndez, these represent two very different types of FDI. In 2023, investment was inflated by capital controls and increased commercial debt. “Since companies couldn’t take money out, many engaged in carry trades or took on debt because they couldn’t access the foreign currency they needed to exit. In 2024, with the introduction of the Bonds for the Reconstruction of a Free Argentina (Bopreal) and other smaller measures, this situation normalized, and what we’re seeing now is much more genuine,” he explained.
The RIGI Framework and Key Investment Projects
To encourage capital inflows from the start of its term — and avoid repeating what happened under Mauricio Macri — the government enacted the Large Investment Incentive Regime (RIGI). According to official data from the Ministry of Economy, there are currently 23 projects totaling USD 50.589 billion. The RIGI committee has already approved several worth USD 24.814 billion, while another USD 25.775 billion is under review. Among the most significant approved projects is that of Southern Energy (owned by Pan American Energy (PAE) and Golar LNG), which plans to install a floating liquefied natural gas (LNG) production vessel in the Gulf of San Matías, Río Negro. The project involves a USD 15.156 billion investment over its expected 20-year lifespan.
U.S. and Global Capital Lead Argentina’s Foreign Investment
With financial assistance from the United States to the consulting firm Analytica, President Donald Trump seeks to expand U.S. companies’ participation in Argentina’s economy and curb potential Chinese investment. “The presence of U.S. capital is nothing new. In recent years—up to the first quarter of 2025—U.S. investors accounted for the largest share of Argentina foreign investment, totaling USD 9.999 billion between 2021 and the first quarter of this year,” the report noted. This positioned the U.S. ahead of Spain (USD 9.043 billion) and well above Brazil (USD 6.970 billion).
Investor Confidence and Exchange Rate Outlook
Over the weekend, reports surfaced suggesting that Caputo had told a group of investors in the United States that he was considering changes to the exchange-rate band system within the next 30 days — a claim later denied by official sources at the Ministry of Economy. On Monday, November 10, 2025, the Minister of Economy, Luis Caputo, met with a group of investors on the fifth floor of the Ministry of Economy building in an event organized by Morgan Stanley. “There will be growth, the fiscal surplus remains intact, investments are coming, and money will flow in,” said one of the attendees. Others, however, were more cautious about the economic program. They came to assess how things were progressing, acknowledging that although they view the program as sound and believe capable officials are in charge, uncertainty persists. Several also expressed doubts about whether the economic team will be able to access international markets before the end of the year.
The Road Ahead for Argentina’s Foreign Investment
While inflows have shown an encouraging upward trend, economists agree that Argentina foreign investment must accelerate substantially to stabilize the peso, strengthen reserves, and sustain growth. For now, confidence in Caputo’s fiscal discipline and the success of the RIGI program will determine whether Argentina can attract the scale of foreign capital it needs to power a lasting recovery.