Dollar: How much will it be worth in 2025, according to Javier Milei’s Budget?

Dollar: How much will it be worth in 2025, according to Javier Milei’s Budget?

September 15, 2024 – 21:53

The economic programme for 2025 again rules out the possibility of a jump in the exchange rate. The government is forecasting a devaluation of 18.3%.

The Government predicts a devaluation of 18.3%.

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The Government expects the dollar to close 2025 at $1,207, which represents a devaluation of 18.3%, according to the Budget for next year presented by the president Javier Milei. The pace would be in line with inflation.

The economic programme for 2025 thus again rules out the possibility of a jump in the exchange rate, contrary to the voices of certain sectors, including the International Monetary Fund (IMF), which call for a greater correction, which they consider overdue.

On the other hand, the authorities anticipate a marked slowdown in the inflation, which would reach 18.3% next year, far from the 104.5% that the consumer price index is expected to increase during the current year. This implies an average inflation of 1.4% per month. This means that the Government expects the dollar to accompany prices.

For certain sectors of the economy, especially those that export, the exchange rate is lagging and they are calling for a greater devaluation. The IMF is of the same opinion, considering that the crawling peg, which is currently at 2% per month, should be accelerated. However, the Government has so far remained firm in not touching the dollar abruptly.

The dollar issue is one of the key points for an economy like Argentina’s, which operates on a bimonetary basis and where greenbacks are scarce. Reserves are a key point for the sustainability of the program.

Source: Ambito

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