In Los Angeles, the Minister of Economy, Luis Caputo, is set to meet with the head of the Monetary Fund, Kristalina Georgieva. At a recent investor forum in the United States, he presented his view on the impact of policies in central economies on emerging countries such as Argentina. In his presentation, he discussed the risks and challenges faced by developed economies and how their measures affect developing countries.
One of the main concerns facing Argentina is the decision by the US Federal Reserve to keep its official interest rate unchanged at 5.25% to 5.50%, which could strengthen the dollar and weaken prices of Argentine agricultural products while making debts in dollars more expensive. This puts pressure on negotiations with the IMF as Caputo seeks a new program and fresh funds of US$15,000 million to lift stocks.
The government’s policy of managing exchange rates, liquidity, and stocks faces cross-pressures locally as it aims to avoid inflation acceleration and reduce central bank debt but clashes with IMF requests for a different course of action. In this midst of challenges, there are critics of government economic policies among orthodox economists and former officials. President Macri has defended his position while navigating economic difficulties and ongoing negotiations with the IMF. The situation remains complex as Argentina faces significant financial obligations throughout the year.