In the midst of a prolonged financial crisis, the official will have to keep the price of the dollar at bay, which many experts predict will rise due to political instability, which could further fuel inflation that analysts currently estimate will exceed 70% this year.
“I think there was a vacuum, but we came from many imbalances that we have to see how they are going to face (…) How is it done to correct these imbalances while maintaining some degree of support,” the economist and former secretary told a local radio Finance Daniel Marx.
“I am going to be looking especially at what economic policy decisions transcend and what orientation is to be given to this and based on that give an opinion on whether the exchange rate is cheap or not,” Marx added to Radio Con Vos.
Batakis, chosen by the moderate president Alberto Fernández, was in charge of the Treasury portfolio of the powerful province of Buenos Aires between 2011 and 2015, and until now she served as Secretary of Provinces of the Ministry of the Interior of the Nation.
“It will be necessary to see what type of program it puts together because the situation is extremely delicate and what support it can achieve. There are many complex fronts, open at the same time: from very misaligned relative prices, improving the exchange front, mobilizing the economy in a sustainable way and stabilizing. The reaction of the market to a name like hers, which was not considered, will depend on how she takes the first steps and what signals come from across the political spectrum,” Marx explained.
“Argentina is in a fragile situation and the appointment of the next economy minister cannot focus on changing the name, but rather we have to see what each one can contribute,” Marx had said before Batakis’ appointment became known.
“The market was already fragile and now it’s going to be terrified,” said Riccardo Grassi, head of Risk Management at the Mangart investment fund, which was involved in the debt restructuring led by former minister Guzmán in 2020. “If they don’t review the (economic) model is going to implode,” he added.
Source: Ambito
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