Javier mercy rejects the calls of several Argentine investors to give up exchange control of the weighta policy that led the United Statesos to spend 20 billion dollars (about 17 billion euros) to sustain a local currency, little before October 26 legislative electionsin which the coalition led by Milei was reinforced.
A Argentina controls the value of weight through a range of variation in relation to the dollar, within which the currency can fluctuate, avoiding sudden falls and giving more stability to the economy. Investors and senior investment banking staff have suggested that this policy should end, taking advantage of the tide of optimism following the electoral victory and thus “rebuilding” the Central Bank’s reserves.
Milei rejects the hypothesis: “We have a program and we will maintain it.” Some andArgentine economists also consider that the weight is overvalued, but the head of state quotes the US Treasury Secretary, Scott Bessent, para defender the opposite: “What do you think is worth more?? An expert’s opinion successful and representative of the US Treasury, like Mr. Bessent, or a group of local idiots? (…) Argentina will not enter into default. Our commitment to repay the debt is irrevocable.”
mercy consider what investors who found themselves worried are being influenced by “local economists and consultancies, who systematically they make mistakes” and says that they already predicted, in April, that the Government would be attacked by opponents before the elections.
Milei aims to return to the markets
Scott Bessent assured that he will all possible to support an important strategic ally like Argentina and recognizes that the main objective of the North Americans is to reaffirm themselves in Latin America, to contain the expansion of China.
Due to the economic support that the USA has “offered”, Milei assured Donald Trump that he could fight it with Argentina’s full support in the fight against drug trafficking, particularly in Venezuela. He also said that he agrees with Trump’s pressure on Venezuelan President Nicolas Maduro, whom he dubbed a “narco-dictator”.
Milei’s Government tem managed to control Argentina’s historic inflation, but the economy has stagnated in recent months. O increase of interest rates, with the aim of containing inflationary pressures, reduced the access of companies and consumers to credit. However, the executive hopes that Argentina will regain access to global capital markets next year.
mercy also has a plan to accelerate economic growth: expect end around 20 taxes, returning around 500 billion dollars to Argentines’ pockets by 2031, the year in which a possible second term could end.
To approve these reforms, Milei’s A Liberdade Avança platform needs to negotiate with other parties, as it does not have an absolute majority in the Argentine Congress.
Text written by Margarida Nogueira and edited by João Pedro Barros