Argentina's new economy minister will allow banks to reopen today, and the battered peso will be floated.
The moves come as Argentina emphasises its free-market and pro-International Monetary Fund (IMF) credentials.
"The economy has to be oxygenated," said Mr Roberto Lavagna yesterday. Mr Clarin took up the position of economy minister last week after his predecessor resigned amid the continuing financial crisis that forced the government to close banks for a week.
The move to reopen banks and foreign exchange markets will give some relief to Argentines, hit by a currency devaluation and four years of recession. Last week, the government tightened a deposit freeze, in place since December, to stop a drain on a collapsing financial system.
The decision to allow the peso to trade freely will also please the International Monetary Fund and investors. They were worried after President Mr Eduardo Duhalde hinted he could fix the peso after it slumped 70 per cent against the dollar this year and sparked rising inflation.
In another attempt to please the IMF as the government negotiates for crucial financial aid, Mr Lavagna said he wanted to change two controversial banking laws. One is the bankruptcy law, which the IMF said protects debtors, and the other the "economic subversion" law, criticised for allowing "legal witch hunts" against bankers and investors.
But Mr Lavagna told local television the IMF needed to stop making harsh declarations over Argentina, alluding to blunt comments calling for the country to make quick reforms. He said the IMF needed to look at its own errors as well as Argentina's in contributing to the crisis.