Economy Minister Luis Caputo says that Argentina's government is holding talks with the International Monetary Fund (IMF) and that the multilateral lender is open to a new programme.
"TWe are talking to the Fund. We are just starting to talk about the new programme, but we haven't agreed on anything at all. Not even if it's going to involve more money or not," revealed Caputo, as he spoke during a high-profile address at the AmCham 2024 Summit in Buenos Aires.
"They always said they were open to a new programme and, as part of that, we are talking," he told those gathered at the event, which brings together representatives from US companies active in Argentina.
Caputo's remarks came after President Javier Milei again put the dollarisation of Argentina's economy on the agenda. During a television interview aired Monday night, the La Libertad Avanza leader declared that he would remove currency controls overnight if he had US$15 billion. According to the president, Argentina's economy will then "take off."
Quizzed about the statements during an engaging interview with AmCham President Facundo Gómez Minujín, a senior country officer at JP Morgan, Caputo said that the cash required by Milei could "come from anywhere," the IMF included.
"Dollarisation or currency competition?" the host asked the economy minister.
"The president started talking about currency competition before the elections, perhaps it went unnoticed by many," responded Caputo.
"The idea is to go there, the objective is to try to lower inflation more at a level of shock. We are not inclined to think of a gradual monetary scenario, people have no tolerance for a gradual decline, inflation has to come down," he added.
He added that currency competition would imply a free float, when the conditions are right. He refused to put a date on the topic.
"We do know that it will work and it will lower inflation, and it will allow for a faster recovery of the economy," argued Caputo.
"It's very important to remove the cepo," he said, using the word that refers to currency controls. "But we're not going to take unnecessary risks."
High-profile
Caputo was the headline speaker of an event featuring many high-profile figures from President Javier Milei's government.
Foreign Minister Diana Mondino and US Ambassador to Argentina Marc Stanley were among those talking up the potential for bilateral relations, with the latter declaring the nation is a "natural partner" for Washington.
Stanley, who highlighted the numerous visits made by US officials to Argentina since Milei took office, said US President Joe Biden's administration is "very interested in economic reforms already underway" and would support the government's commitment to reform.
He stressed, however, that the government in Buenos Aires should look out for the nation's most vulnerable and ensure they are not punished during the reform push.
In his speech opening the conclave, Gómez Minujín said that it is clear that Argentina needs "a deep political transformation."
The preceding government's "formulas and recipes" did not work, he argued, leaving behind a country without growth.
Though "today we face significant challenges," he added.
He was among a number of voices to call for the backing of President Milei's proposed 'Pacto del 25 de Mayo' laying out ground rules for provincial governments to observe.
Buenos Aires city Mayor Jorge Macri also echoed that call.
"I want to guarantee that I will be there on 25 May, because I believe in the need to find structural agreements that give certainty, above all to those who invest, develop and have the immense responsibility and opportunity to generate wealth in Argentina," said the City mayor.
"The reconstruction of Argentina calls to us all. We can’t let another possibility pass us by," agreed Gómez Minujín.
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