Buenos Aires News: Two days after Javier Milley was sworn in, Argentina announced economic reform measures on the 12th local time, including a sharp devaluation of the national currency and a reduction in fiscal spending.
The Associated Press reported that Argentina's Minister of Economy Luis Caputo said in a televised speech on the 12th that Argentina decided to adjust the official exchange rate of the peso to 800 pesos to 1 US dollar (previously about 366 pesos to 1 US dollar), cancel all tenders for public works projects, cut financial subsidies for the energy and transportation industries, and eliminate state civil service posts to reduce the scale. He also mentioned that Argentina** had been reduced from 18 to 9 ministries.
In a matter of months, we will be worse off than before. But if it doesn't, Argentina will inevitably fall into hyperinflation, Caputo said. The task is to avoid a "catastrophic situation". He said that the reason for Argentina's economic difficulties is the ** fiscal deficit, and the above measures are necessary to reduce the deficit.
Reuters reported that Argentina currently has inflation of about 150%, a large fiscal deficit, and two-fifths of the population is in poverty. Milley campaigned on the slogan "No more money!".As a slogan, it promised to vigorously implement economic reforms when elected.
The International Monetary Organization (IMF) issued a statement on the 12th, welcoming the reform measures announced by Argentina on the same day. The statement said these "bold initial actions" would help stabilize the economy and lay the groundwork for more sustainable, private-sector-led economic growth.
The IMF reportedly approved a debt refinancing program for Argentina in March, providing about $44 billion in special drawing rights to help the country cope with high inflation and fill the social and infrastructure financing gap.
Reuters quoted analysts as saying that the measures announced by A** this time send a strong signal to the outside world about economic reform, but whether it can be implemented is the key. The entire process can be accompanied by economic, political and social risks. The Associated Press reported that the measures were criticized by leftists in Argentina, saying that the lives of Argentines would be significantly affected, which in turn would lead to social unrest. (China News Service).