May 17, 2022 12:23 pm

The Government does not foresee more measures and bets on the IMF to curb the dollar

With a unstoppable dollar and little impact of the measures to stop the inflation, in the national government encrypt their expectations that an eventual agreement with the International Monetary Fund (IMF) will calm the indices out of control of the economy. This is how they summed it up THE NATION ruling sources, who ruled out that, immediately, extra measures be taken to control the rise in the US currency or try new ways to control inflation.

“The agreement is going to allow us to start ordering the numbers of the macroeconomy and, in that scheme, one of its consequences will be to be able to begin to progressively lower inflation, which is without a doubt the main problem to deal with after the Fund”, they detail in the Casa Rosada, by focusing beyond the short term. In December, inflation climbed to 3.8% and accumulated 50.9 during 2021. It was the second highest since 1991.

In the Government they also point to the state of the situation of the hectic negotiations with the IMF when explaining the financial overheating. “The negotiation is at a decisive moment, in which these general scenarios are common”, they agreed before THE NATION the sources consulted. And they argued that the situation is exacerbated by the “interests”, “tensions” and “operations” that occur in scenarios of “uncertainty” such as the one experienced with the search for an agreement as a backdrop. “It is the history of the country,” a high-ranking Executive official sought to summarize.

The dollar, in turn, rose almost $10 pesos in the last week and closed on Friday at $219.

In the Casa Rosada they consider that, until a definition is reached in the agreement with the IMF, “You can’t go out and take foolish and crazy measures”.

“We are in a moment of definition,” they insist. “It is a negotiation and it is always known that the hardest moments are just before being able to sign, in which each party gets tougher regarding their requirements,” they maintain.

In the Government they add another factor to justify the escalation of the dollar: seasonality. They remember that the foreign exchange from the main harvests has not yet entered and there are still remnants of the extra pesos that usually circulate at the end of the year, with bonuses and bonuses. “It is the logic of this time, but at this time it complicates much more than usual,” summarized in the ruling party.

En the Government there is also discomfort about the treatment of Foreign Minister Santiago Cafiero’s visit to Washington, and highlighted the importance of meeting with the US Secretary of State, Antony Blink, and dined with John Gonzalez, adviser to the president Joe Biden for Latin America. In addition, the foreign minister met with the main State Department diplomats for the region, Brian Nichols, Ricardo Zuniga and Kevin O’Reilly.

Only Biden remained higher than Blinken to meet, but here he prefers to say that the meeting was a failure or that Argentina came back empty-handed”, detailed an official angrily.

After the meeting with Cafiero, the United States government once again asked the government of Alberto Fernández to present “a solid economic policy framework that returns growth to the country” in order to reach a new agreement with the IMF. “Trips are measured not only by what a person brings or doesn’t bring, but also by the impact of who they met, and in this case what was achieved on Cafiero’s trip was really very important, but they prefer to say who returned empty-handed”, they defend themselves in the Government.

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