After a week in which the National Government regained optimism, now the Ministry of Economy and the Central Bank They began to define what the strategy will be for the new stage, where the main objective will be the lifting of the exchange rate.
The approval of the Bases law, the fall in inflation, the transfer of money by the IMF and the renewal of the swap with China were crowned, from the official perspective, with a “highlight” participation of President Javier Milei in international forums. Nothing will prevent the economy from falling 3.5% this year.
The effusive reception that Italian Prime Minister Georgia Melonigiven to Milei within the framework of the G7 summit, was commented on in international spheres.
Also the hug that was given in Switzerland with the president of Ukraine, Volodymyr Zelenskyto whom he once again offered his support in the war with Russia.
Milei intends to play a prominent role in the international sphere, and the latest cover that Time magazine gave him seems to have finished motivating him to show himself as a liberal reference for the world.
In this scenario, the Government seems to have returned to the idea of accelerating the elimination of the main obstacle to the arrival of investments: exchange restrictions.
The Central Bank made this intention official, but clarified that the lifting of the dollar stocks will only be applied when there is certainty that there will be no risks to the process of reducing inflation.
The economic team – which has just lost Vice Minister Joaquín Cottani – has already resigned itself to the fact that the decline in inflation will not continue in June, largely due to the impact that the increase in electricity and gas rates will have.
The Government plans to present an updated monetary program to the IMF in early July. The focus will be to continue contributing to macroeconomic stabilization.
Meanwhile, efforts will be made to revitalize the fiscal balance and the almost zero monetary issue.
The Government admits that it is still far from international standards in terms of inflation, when Argentina is the only economy in the world that has not yet resolved the price problem.
At this time, prices were no longer the main focus of public opinion’s concern. The scenario of layoffs and fear of job loss became the main problems affecting the population.
In the first four months there were more than 120 thousand layoffs between the private and public sectors.
Milei already said that there will be another 50 thousand in the State. Everything contributes to generating an atmosphere of instability among workers who have lost income rapidly since Milei became president.
These are figures from a world inhabited by millions of employees, time broken and unequal wherever you look.
The few companies that hire people do so as “invoicers”, which explains the growth in the number of monotributistas. More precarious employment for an economy that has not yet reacted.
