Buenos Aires, Jun 28 (EFE).- Argentine Economy Minister Luis Caputo announced Friday the “second stage” of the stabilization plan of Javier Milei’s government, which consists of eliminating another cause of money issuance by the Central Bank (BCRA).
“We have three monetary emission channels. One is the fiscal deficit, the second is the interest that the Central Bank pays on remunerated liabilities, the third is when the Central Bank buys dollars,” Caputo said at a press conference at the Ministry. of Economy, accompanied by the president of the BCRA, Santiago Bausili.
Milei’s government achieved a fiscal surplus of 0.4% of GDP in the first five months of the year, thus eliminating the main cause of monetary issuance, which served as a fiscal anchor to slow monthly inflation from 25.5% in December 2023 to 4.2% last May.
The elimination of monetary emission for the BCRA’s liabilities was announced after Congress approved early this Friday the so-called ‘Ley Bases’ and a fiscal package, an ambitious package of economic reforms that is expected to allow it to consolidate fiscal balance.
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