Caputo says no devaluation planned, new IMF negotiation yet to begin

The minister clarified aspects of economic policy and blamed journalists for what he called ‘fabrications’

Luis Caputo in a press conference. Credit: Télam

Economy Minister Luis Caputo denied that the government is planning to devalue the currency further or eliminate the preferential export scheme, as the International Monetary Fund (IMF) suggested in its latest review. The minister also said it had not started negotiations for a new agreement with the last-instance lender.

Caputo made these statements in a Thursday post on X in which he also blamed  journalists for “fabrications,” adding that  the Economy Ministry and the Central Bank’s teams cannot “waste time refuting each of these lies.”

The minister stressed that the IMF has no problem with the government keeping the 80:20 preferential export scheme, which allows exporters to sell 80% of their dollars in the official market and 20% at the blue-chip swap rate market. However, the Fund’s eighth staff report, published last week, said that the administration committed to eliminating it in June as a step to unwind multiple currency practices and foreign exchange restrictions.

“It is in the statement because it is from earlier, when we estimated that the [Ley Bases] would be approved in March,” Caputo explained in his post. The minister said that the Central Bank would also maintain the monthly 2% devaluation of the peso or “crawling peg.” 

The IMF staff report mentioned the utility of this scheme but pointed out that it should be temporary.“While the fixed rate of crawl has helped anchor inflation following the large step devaluation, the authorities will adjust foreign exchange policy over time to move more flexibly,” the report said.

Last week, Caputo also said the government was going to start negotiations for a new program with the lender to obtain fresh funds, which it would use to lift the exchange restrictions known as the cepo, Spanish for clamp.

Caputo concluded his X post by saying the government has not yet started these negotiations,  but clarified that the administration has a “very good relationship” with the lender.

“You should know that, as has always been the case since we took office, when there is any change in economic policy, we will inform you ourselves, and if we say something, we will comply with it,” the minister wrote.


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