After the approval of the basic law, The Government prepares a monetary program in accordance “with the plan that we are working on, to deepen what was implemented in economic matters in these six months,” advance to Ambit a high-ranking source at the Casa Rosada. The announcement is expected to be made in the coming days.
In this regard, the president Javier Milei In recent days, he held meetings with his collaborators in the economic area, led by the head of the Treasury Palace, Luis Caputowith the purpose of “outline the next steps of the program” in progress.
It is worth remembering that, in accordance with the agreement with the International Monetary Fund, it is planned that The Argentine authorities will present to the multilateral organization, at the end of this month, a monetary programming framework.
The purpose of the definitions that will be known in terms of monetary programming is to “contribute to further reduce uncertainty by providing more information about the projected behavior of monetary variables consistent with the continuity of the macroeconomic stabilization process”, as stated in the statement.
Market confidence
The intention of economic driving is continue to gain “trust” of economic operators, strictly maintaining the basis of the program consisting of completely closing the monetary issue for the purpose of financing the deficit.
In this sense, this medium was able to learn that the officials of the Ministry of Economy and the IMF technicians continue to maintain numerous meetings.
In official media it is stated that For the moment there will be no news regarding the exchange rate. From this point of view, the Government has already indicated that it will lift exchange and capital controls only when it is sure that it will not have “excessive risks to the process of reducing inflation” and strengthening the BCRA’s balance sheet.
Also They rule out changes in exchange rate policy. In this regard, days ago, Minister Caputo through his account on the social network X assured that “there is no devaluation planned”, reaffirmed that the 80/20 exchange rate scheme, also known as the export dollar or blend (allows companies to sell 20% of their income in foreign currency in the financial market and settle the remaining 80% at the official exchange rate) and “the 2% crawl are also maintained”, that is, the exchange rate adjustment mechanism at a monthly rate of 2%.
The Government must “improve monetary and exchange policy frameworks and communication to firmly entrench the disinflation processfurther improve reserve coverage and support the transition to a new “monetary competition” regime, according to the latest IMF report on the country.
The organization understands that “this should be complemented with a well-calibrated easing of capital flow regulation measures, with an early elimination of the most distorting multiple exchange rates and foreign exchange restrictions, as well as reforms to create a more market-oriented economy that supports a rebound in activity and boosts Argentina’s growth potential.”
Precisely, it is established that, towards the end of July, the Argentine authorities must present to the Fund a scheme referring to the gradual relaxation of exchange controls.
Thus, the agreement with the IMF contemplates that “monetary and exchange policies will evolve in the transition towards a new monetary regime that will imply “coin competition”.
Source: Ambito
