Argentine government seeks to stabilize currency
The Minister of Finance of Argentina, Hernán Lacunza, assuming his position, promised to stabilize the currency and meet the fiscal goal agreed with the International Monetary Fund, all this 68 days after the presidential elections
Minister Hernán Lacunza said that “Guaranteeing the exchange rate as a first-order objective in this electoral process” will be its task, after last week the Argentine peso depreciated 20%.
Also, amid the turbulence and after the electoral setback of President Mauricio Macri in the primary of August 11, he said: “We will guarantee the fulfillment of fiscal goals.”
It is worth emphasizing that Lacunza replaces the resigning Nicolás Dujovne, who has held the ministry since January 2017 and was the main promoter of the agreement with the International Monetary Fund (IMF) that launched a strong adjustment to reach the fiscal balance, in exchange for a record loan of 56,000 million dollars.
“The exchange rate is long above its equilibrium value,” Lacunza said, referring to the depreciation of the peso that closed last Friday at 58.12 per dollar. “Allowing more volatility would only add uncertainty and inflationary pressure,” he said.
For its part, the IMF announced that “soon” a mission will visit Argentina. “We are in continuous dialogue with the authorities while working on their policy plans to address the difficult situation that the country faces,” said spokesman Gerry Rice.
L. Sáenz
Source: Banca & Negocios
