Argentina's Economy Minister, Luis Caputo, announced this Tuesday night (12) the first economic package of the government of Javier Milei, sworn in this Sunday (10) under the banner of reducing the public sector and state interference in the economy.
Caputo began his speech with the statement that the country was heading towards hyperinflation “in the face of the worst legacy in Argentine history”. However, he added that the situation is not likely to ease for the population in the short term. “We will be worse off than before for a few months,” he warned.
Among the measures announced is the increase in the exchange rate from 366.5 to 800 pesos, which represents a devaluation of 54% of the currency against the US dollar. The minister justified that the adjustment will provide “the necessary incentives” for companies to produce and invest more.
Regarding taxes on exports, called “retenciones”, Casa Rosada will provisionally increase the rates for non-agricultural products. Furthermore, at some point, export subsidies will be eliminated.
In addition, the current import system will be replaced by one that does not require prior approval of licenses. “Whoever wants to import, do so, period,” said Caputo.
In addition, the federal government proposed the elimination of new tenders for public works, the non-renewal of State employment contracts with less than a year in effect and the withdrawal of subsidies for energy and transport.
Source: datagro
