Argentina guarantees that it will not devalue its currency after presidential elections

The Argentine Government assured that, whatever the outcome of the general elections on Sunday, it will not devalue its currency, thus denying the opposition’s comments and establishing a difference with what happened on August 14, the day after the primaries.

The economist and possible Minister of Finance if Juntos pela Change (center-right) wins, Carlos Melconiano, He estimated that due to inflation data from August, September and October, the official price of the dollar would reach 500 pesos per unit after the October 22 elections.

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“Melconian did not read the agreement with the International Monetary Fund (IMF) that establishes a fixed exchange rate until November 15th. It’s a shame that, just like when he had conversations with the IMF, he continues to sabotage through lies“, replied on his social networks the Secretary of Finance of the Ministry of Economy, Eduardo Setti.

One day after the PASO elections (primary, open, simultaneous and mandatory), in which libertarians Javier Milei was the candidate with the most votes, the Executive carried out a 22% devaluation of the peso, setting its official exchange rate in relation to the US dollar at 350.

In the following days, the current Economy Minister and official candidate, Sergio Massa, stated that this devaluation was imposed by the Fund as part of the recent revisions to the $45 billion debt refinancing agreement signed in March 2022.

Furthermore, the Deputy Minister of Economy, Gabriel Rubinstein, stated that the official dollar will remain at current values ​​and that from mid-November the adjustment would be only 3%.

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“Everyone has realized, at home and abroad, that without a significant amount of dollars to control the financial system, ‘maxi deva’ (maximum devaluation) is useless,” he added.

Argentina and China reached an agreement this Wednesday to expand the exchange rate swap that will allow the South American country to go from the current 5,000 million dollars to 11,500 million dollars, which Massa said would be “important” to pay for imports from PME, intervene in the market and pay future maturities to the IMF.

In this way, the Argentine Government hopes to contribute to containing the instability and volatility of the market and the vulnerable local currency.

Source: Elcomercio

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I am Jack Morton and I work in 24 News Recorder. I mostly cover world news and I have also authored 24 news recorder. I find this work highly interesting and it allows me to keep up with current events happening around the world.