After Central Bank (BCRA) announced this Monday a new phase of its monetary program, the Minister of Economy, Luis Caputoannounced details of the new system Accumulation of international reserves and explained how the dollar changes will be applied. “The band scheme will be retained. The change is minor, but.” It’s an improvement over what we had.“, taken into account.
According to the headquarters, the lower and upper limits of the exchange rate bands will be set from January 2026 is updated every month according to the latest available inflation datawhich replaces the 1% slippage introduced in April last year.
This Tuesday, the official praised the economic program of Javier Milei’s government, saying it had proven to be “the most robust in modern times.” “He overcame the worst economic legacy in history and stabilized the situation without falling into crisis: We did not create the Bonex plan, we did not default, there was no correction or condemnation“, he listed.
“The distrust of Argentine politicians towards economic policy is understandable. The second test we had was this Collapse in money demand and unprecedented dollarizationand so the entire program resisted. It has been successful in implementation and has withstood the largest dollarization attack in recent memory,” Caputo added in the streaming. The house.
“This is the government that has bought the most reserves in history, but the problem has always been accumulation. For every dollar Argentina has bought before, it has accumulated little.” This government suffered from political uncertaintya collapse in money demand where people no longer want to have pesos in their pockets,” he expressed, adding: “Now we have refinancing from the Treasury. Starting in January The Treasury buys dollars, holds them, and accumulates reserves“.
Caputo also referred to the Labor Reform Project which the government sent to the National Congress after being signed by President Milei and hopes to receive half the approval of the Senate before the end of the year. “We were immersed in one Vicious circle in which the country always had a deficitincreased taxes and led to people being driven into informality. Then you had to take on more debt or emissions,” he said in this regard.
“We find ourselves in a reverse pattern: we have done what no one thought possible, not even abroad, namely balancing the budget accounts. Today we must continue to collect more in order to cut more taxes: since we have already decided on the majority of the budget adjustments, the path is the opposite of what happened.” achieve greater formalization and expand the base so that more people pay taxeshe added.
The suggestion of Work modernization the Mileist administration addresses the main points that change the employment contract law and affect variables ranging from the calculation of compensation to vacation.
“We want to do this with labor law Promoting work formalization“If we succeed, we will grow and the country will earn more, and if we also keep spending constant, we will have a larger surplus,” he said, explaining: “Instead of wasting it, We give it back to the private sector in the form of lower taxeswhich makes you more competitive and you enter a virtuous cycle. When there is more investment, there is more formal employment and the economy grows.”
Regarding the alleged tax cut that the government will bring after the labor reform, the economy minister said that “it will be high” and reiterated that the ruling party has “bet heavily on formalization.” “The goal is to maximize the change we are experiencing: the president’s popularity is at its peak, It is a magnet for investment in the world… It is not valued the way it should be valuedThe president is outside Rock star overall,” Caputo said.
And he asked: “His travels have been questioned, but all the attention Argentina received is not normal… All the investments in the real economy that we want to achieve would take a decade, but.” We are seeing unprecedented interest in record time especially because of the combination of what became more of the figure of the president.”
About The Author
