On a key day for markets and after volatility days, the IMF could give details about the agreement and provide additional support to the government, which seeks allies for Board’s approval.
The markets are attentive to the novelties that could arise this Thursday at the traditional press conference of the International Monetary Fund (IMF), headed by her spokesperson, Julie Kozack. It is expected that in this instance details are provided on the progress of the negotiations for a new assistance program, after the announcement of Luis Caputo in which he confirmed that the amount of the agreement will be $ 20,000 million. The doubt about the possible date on which the Board of Directors will discuss the Argentine case will also begin to be clarified.
The Government in search of support
In the government, optimism persists on March of negotiations with the IMF. Organism sources confirmed Scope that “The Technical Team of the Fund is holding consultations with the Executive Board “ and that the conversations about the New program are “advanced” within the usual processes of the entity.
The support of powers such as France, Italy and the United States was played favorably by the Palace of Finance. In particular, a post of the French president, Emmanuel Macron, highlighting the support of his country to Argentina, was well received in the official field. To this is added the good personal relationship of President Javier Milei with the Italian Premier Giorgia Meloni and President Donald Trumpwhich reinforces the expectation that Argentina will have the support of the countries with the greatest influence within the IMF, such as the United States, China, Germany, Italy, France and Japan.
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The exchange policy in the eye of the markets (and of the IMF)
Meanwhile, markets have been operating volatility in recent days, amid uncertainty about the course of exchange policy and the expectation for the agreement with the IMF. Last week, statements by the Minister of Economy, Luis Caputo, in which he avoided confirming the continuity of the “Crawling Peg” scheme, They generated restlessness among financial operators. The technical agreement with the Fund, known as “Staff Agreement”, is expected to provide key definitions in this regard.
The future of the program with the IMF will also be decisive for the financing of the country. It is estimated that the new agreement could include a disbursement between US $ 13,000 YU $20,000 million, which would allow to relieve currency needs and strengthen the reservation position of the Central Bank. Nevertheless, Government sources have clarified that this new agreement will not imply an immediate release from the exchange rate, since certain macroeconomic conditions must still be met.
The current discussions between the economic team and the IMF revolve around the exchange issue. The organism technicians insist on the need to accumulate reservations and achieve a balance change rate. The possibility of establishing a scheme of Exchange bands that allow greater flexibility without abandoning the dollar as a key reference for the economy.
Source: Ambito
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