The Milei Impact was reflected in the Central Bank of Argentina surprised the markets by devaluing the value of the official peso to 350 per dollar on the eve, establishing this rate until the general elections in October. This measure generated a significant exchange rate gap of 101.4%.
Sustained Rise of the Blue Dollar
The “blue” dollar, an informal reference in Argentina, set a new nominal record on Tuesday, reaching 705 Argentine pesos in its sale value. This increase represented an increase of 25 pesos in the course of the day, equivalent to 3.6%. This development came after the unexpected victory in the primary elections of the libertarian candidate Javier Milei.
Challenges in the Business Context
The business situation was affected by a reduction in activity due to police controls in downtown Buenos Aires. In this scenario, the peso experienced a depreciation of 2.84%, trading in the range of 695 to 705 pesos per dollar. This figure was above the previous record of 695 units recorded the previous day.
Political repercussions after the Triumph of Milei
The result of the primary elections surprised by presenting the ultraliberal candidate Javier Milei as the most voted. This situation unfolds in a context of discontent and disinterest on the part of Argentines, in the midst of a prolonged economic crisis.
IMF Evaluates Argentina’s Stocks
The International Monetary Fund (IMF) issued a statement in which it valued the recent political actions carried out by the Argentine authorities. He also highlighted the country’s commitment to preserving economic stability. IMF spokeswoman Julie Kozack praised the effort to rebuild reserves and strengthen the fiscal position.
IMF Response to Policy Actions
The IMF statement did not detail the specific policy actions it was referring to. It should be remembered that recently the Central Bank of Argentina reduced the peso by 22% with respect to the official wholesale exchange rate. The IMF recalled that on July 28, Argentina and the IMF staff agreed on debt refinancing targets, pending approval by the IMF Executive Board, with a meeting scheduled for August 23. This agreement would result in a disbursement of 7,500 million dollars for Argentina.
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