Louis Caputo He said this Monday that the trade agreement with the United States “It’s ready” He stressed that the terms would be “beneficial to both parties.” In addition, the Minister of Economy explained why there is no free floating exchange rate and presented his forecasts on inflation and growth for the coming months.
“The trade agreement has been worked on for several months between the Ministry of Foreign Affairs and the Economy. The agreement is ready,” Caputo said.
The Minister of Economy explained, in an interview with LN+: “We hope that it will be announced as soon as the United States decides to do so. Because the United States is working at the same time with many countries and they are the ones who decide the arrangement of the announcements.”
“It is very beneficial for both countries. Certainly for us, yes,” he added.
As shown ClarionIt will be a reciprocal tariff agreement with preferential positions for about 100 strategic items. These items will be exempt from entry barriers in both Argentina and the United States.
Earlier Monday, Alec Oxenford, Argentina’s ambassador to the United States, said the agreement was “practically closed” and that the two governments were assessing “the appropriate moment between the two parties to put a bow on it and deliver it.”
For his part, Foreign Minister Pablo Cuerno said that there is still no official date. “It is an agreement that takes time, although we are working hard before the tariffs are announced. More importantly, we do not like to expect it before the ink is dry,” Kernow said.
‘Go to sleep in peace’: Caputo defends exchange ranges and abandons inflation and growth forecasts
The Minister of Economy returned to Defending the exchange range chart It moves the dollar price and explains why it is better than free floating.
Caputo commented, “Why do we think this chart is superior? Because people want predictability and we give them that. People don’t want surprises. People don’t want volatility. With ranges we give them predictability.”
He explained that in Argentina there is a “very fragile and volatile situation of demand for money,” and that when demand drops significantly, people’s reaction “is to turn to the dollar.”
“If we float, it could work well. But that decision, risk-adjusted, is not worth it. With bands, we float gradually. We achieve the same effect, but reducing the risk and giving people peace of mind,” he explained the difference between exchange bands and free float.
And leave a suggestive phrase. “You’re not going to wake up in the morning and there’s going to be a shock. If the dollar goes to the top of the range, it’s not going to move from there. So Go to sleep in peace, nothing will happen to the dollar“Caputo said.
He also pointed out Economic inflation. “Argentina came from 1.5% per day and we went to 1.5% or 2% per month,” he stressed when it was pointed out to him that it was difficult to break the 2% barrier.
“Without a doubt Argentina, within the next 12 months, It will converge towards international inflation. He added: “Results in economics are not a coincidence. They are causal. If you do things well, they are accompanied by positive results.”
“We will certainly converge with international inflation. 1% or less than 1%”This moment will arrive in the middle of next year, confirmed Caputo, who estimates that this moment will arrive in the middle of next year.
In this sense, he also expected that the recovery in economic activity would begin to be felt in the third quarter of this year. He expected Argentina to grow by 5% and 6% in 2026.
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