In Los Angeles, Minister of Economy Luis Caputo discussed the impact of policies in central economies on emerging countries like Argentina. He attended a talk with the head of the Monetary Fund, Kristalina Georgieva, as part of a focus on political priorities, investments, and regulatory approaches that can boost growth in the face of economic challenges.
Caputo highlighted the risks and challenges faced by developed economies and how their measures affect developing countries. The US Federal Reserve’s decision to keep its official interest rate unchanged at the highest level in 23 years affects the strength of the dollar, commodity prices of Argentine agricultural products, and the cost of debts in dollars.
During his trip to Los Angeles, Caputo could advance negotiations with the IMF as a technical mission from the Fund is currently in Buenos Aires. He sought a new program and fresh funds to lift stocks but no planned meetings with the Fund have been scheduled during the forum. Caputo traveled with several officials to participate in a global conference organized by the Milken Institute, where they will meet with various international leaders in finance.
The government faces pressure regarding policy decisions related to the dollar exchange rate, liquidity of pesos, interest rate cuts, and abandonment of stocks. Different economists and politicians have criticized these decisions with debates surrounding inflation, central bank debt reduction, and devaluation pace. The Minister of Economy along with other officials will continue to engage with investors and experts to address these economic challenges and seek solutions for Argentina’s financial stability and growth.
