Argentina’s President Javier Milei, who took office on Sunday, announced that Economy Minister Luis Caputo will announce sweeping “shock” therapy plans at 5 p.m. today. The new economic measures will sharply reduce state spending, reduce the size of the public sector, and devalue the peso.
- Analysts expect the official exchange rate of the peso to weaken from around 365 per dollar to 650 per dollar. Parallel markets are already trading dollars for around 1,000 pesos. The Central Bank of Argentina is only allowing trading in the peso on a restricted, priority basis.
- Presidential spokesperson Manuel Adorni said that the economic measures will be in line with Milei’s campaign promises and that the extreme measures will avoid deeper catastrophes in the future. Milei appointed Santiago Bausili, a close ally of the current Minister of Economy, to replace Miguel Pesce as head of the central bank on Monday night.
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https://www.reuters.com/markets/argentina-braces-economic-shock-package-peso-shackled-2023-12-12/
