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The IMF highlighted the Government’s new announcements on monetary policy

The IMF highlighted the Government’s new announcements on monetary policy
The IMF highlighted the Government’s new announcements on monetary policy

He International Monetary Fund (IMF) celebrated this Friday the new economic policy alignments announced this afternoon by the minister of economy, Luis Caputoand the president of the Central Bank (BCRA), Santiago Bausili.

According to a source from the organization, Ambitthe measures were received with “approval” within the framework of the attempt by the Government of Javier Milei to “strengthen the monetary policy framework.”

At a press conference, Caputo announced that The BCRA will stop issuing money to finance its remunerated liabilities, as part of the second stage of the stabilization plan.

“We are closing the tap on the second channel of (monetary) issuance, which is the interest that the BCRA (central bank) pays on remunerated liabilities,” which will return to the national Treasury, the official explained.

He also clarified that there is still no date for lifting the currency controls because they will decide when “there is certainty that it cannot cause any problems in the economy.

The head of the Treasury also confirmed that Under the new agreement being sought with the IMF, there will be a request for additional money and pointed out that once the revenue from the tax package starts to come in, the PAIS tax will be lowered. He estimated that this will happen “between August and September.”

What the IMF said about the Bases law and the fiscal package

Earlier, the IMF had also highlighted the approval by Congress of the Bases law and the fiscal package.

In a message posted on the social network X, the spokesperson for the organization Julie Kozack He said: “We welcome Congress’s approval of key fiscal and structural legislation, as well as measures to strengthen the monetary policy framework. These are intended to improve the quality of fiscal consolidation, further reduce inflation, and support economic recovery.”

He added: “We continue to collaborate constructively with the economic team on policies to create a more prosperous and stable Argentina.”

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According to published Ambit, Ministry of Economy officials and IMF technicians continue to maintain numerous meetingswith a view to the possibility of negotiating a new agreement.

The Government must “improve monetary and exchange rate policy frameworks and communication to firmly anchor the disinflation process, further improve reserve coverage and support the transition to a new regime of “monetary competition”, indicated days ago the latest agency report on the country.

The organization understands that “this must be complemented with a well-calibrated easing of capital flow regulation measures, with early elimination of the most distorting multiple exchange rates and exchange rate restrictions, as well as reforms to create a more market-oriented economy that supports a rebound in activity and boosts Argentina’s growth potential.”

Source: Ambito

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