Changes in the dollar
In this regard, the official exchange rate is set at $800 with an estimated adjustment of 2% monthly. At the same time, the PAIS tax rises to 17.5%, bringing the importing dollar at $940 (official dollar plus 17.5% of the Country Tax). Meanwhile, dollars for export will have a withholding of 15% (80% MULC and 20CCL) leaving a value of $860 and the card dollar $1320 (30% Country Tax and 35% Income Tax and Personal Assets are eliminated). While soybeans remain with 30% of withholdings.
The Central Bank will announce a series of instruments that will reinforce the monetary anchor of the stabilization plan announced by the Minister of Economy, Luis “Toto” Caputo.
The strong fiscal adjustment that seeks to reduce 5% of GDP will be accompanied by the exchange rate anchor. The monetary authority will maintain the crawling peg by adjusting 2% monthly and will not modify the interest rate.
Debt with importers
Likewise, to meet the debt with importers estimated at about 30,000 million dollars, bonds will be issued that will be acquired in pesos (thus managing to get pesos into circulation). These instruments will be possible to exchange to meet your obligations. These bonds will have “more premium” for “longer term.”
Another issue is the elimination of the SIRA, which will be replaced by a statistical system. “There will be no more authorizations,” They state in the economic team, that is, it can be imported freely but the AFIP will inform in what terms payment can be made.
Regarding the payment to the IMF at the end of the month, those around them say, “the funds are available” and they will not resort to the Chinese swap but rather a loan from the Andean Development Corporation, they comment around the Minister of Economy.
The economic measures announced by Luis Caputo
Caputo presented an economic emergency package aimed at reducing the fiscal deficit, ordering economic variables and avoiding hyperinflation. In total agreement with what was stated by the president Javier Milei In his inaugural speech, the head of the Treasury Palace raised the need to eliminate the deficit of 5.5% of GDP that is recorded today.
The greatest emphasis of Caputo’s speech was focused on explaining that the origin of the economy’s problems must be sought in the fiscal imbalance, in the “addiction” to spending more than what is collected.
It is no coincidence then that the largest number of advertisements refer to this issue. Specifically, State labor contracts that are less than a year old will not be renewed, there will be no official advertising (34 billion pesos in savings), the number of ministries and secretariats will be reduced by half, they will be reduced “to “minimum” discretionary transfers to the provinces, the State will not put out to tender new public works and will cancel those that have not started.
The reduction of transfers to the provinces would reach 0.5% of GDP. The cutting of the public work would go from 1.7% of GDP to 1%, that is a decrease of 0.7%. Although the minister did not specify how long the subsidies for companies will be eliminated, ratesfor this concept it is expected a saving of 0.7%.
Luis Caputo announcements: tax review, money laundering and moratorium
To close the fiscal imbalance, measures to increase revenue are also planned. Withholdings on soybeans are maintained at 30% and 15% is applied to the rest. In addition, The PAIS tax is raised to 17.5%, with a contribution of 0.8% of GDP. The increases in withholdings will mean half pointwhile income is expected from the review of the reform of Profits and Personal Assets, moratorium and money laundering.
Source: Ambito
