2024-07-10 10:12:48
President Havel at the signing of the May Pact and the celebration of Independence Day Milley announced Decisive decisions taken once morest the economic backdrop point out In order for inflation and exchange rate depreciation to increase, they must approach zero.
The impact of implementing such macroeconomic targets before the removal of foreign exchange restrictions allows us to hypothesize: It is no coincidence that Millay’s definition was carried out during the holidays and without market operations.
After hearing the stern words of the Archbishop of Buenos Aires, Jorge Ignacio García Cuerva, during the Tedeum event at the Metropolitan Cathedral on July 9 After the sermon, Millay opened his “X” account and agreed to answer questions.
Among inquiries regarding tastes in food and music, one question came up that stood out because of its punctuality: “Good morning. Over the next 90 days, they asked him, did the stock have a future?
The head of state responded immediately.: “Three conditions must be met on the whole… End paid liabilities. End PUT. Inflation and depreciation converge in a near-month zero environment…”.
In this way, Millais added new conditions for the freedom of the trading market.
Javier Milei adds a new condition to boost stocks
So far, the president and the entire economic team have noted Paid liabilities of the Central Bank and PUT (Copper insurance is good for banks) as main issue Resolve before disarming the trap. So far They increase the accumulation of reservesfalling internally due to delays in reserve liquidation and externally due to elusive support from the International Monetary Fund (IMF).
According to the authorities themselves, Regarding paid debt, there is already a solution in progress, Details will be announced following today’s central bank board meeting (which also includes interest rates may rise So that’s really positive in the face of last month’s 5% inflation). and Regarding the PUT, Minister Luis Caputo himself admitted that dialogue was taking place with the banks to find a final solution.
Javier Milei’s statement on a day when markets are not working and the dollar effect
therefore Milei’s commercial “Draw the Bow Again” On the lifting of restrictions on the foreign exchange market and fueling speculation regarding the real reasons for this definition
Los Analysts interpret dollar price instability as related to concerns This creates continuity in economic plans as they link the speed of exiting the recession to the elimination of inventories.
Following a $25 rise on Monday, blue prices opened at $1,440 on Wednesday, another wheel full of rumors. therefore Millais’ “almost occasionally” comment via social media doesn’t seem to be naive.
On the other hand, from The economic team once once more announced the start of negotiations with the IMF A new plan with new funding.
Because of this desynchronization in the statement, The government sends two conflicting signals This may affect the market: on the one hand The president set a long-term condition (inflation is zero) On the other hand, the economic team is discussing a deal that would mean monetary support for a shorter period of time to move away from stocks.
If we take Millai’s words as a parameter, there is still a long way to go. According to predictions, Inflation will remain at 4.5% by the end of the year It will continue to decline by 2025, but it is not certain whether it will reach “zero” or at least approach “zero”.
Another explanation is that the president recovered and took it for granted that there would be no outside help, so he had to tighten macroeconomic conditions to allow the free flow of money.
Javier Mire and Mercosur
In another order, President says his idea for Mercosur is to ensure the bloc makes progress on free trade agreement. “That’s what we’re trying to do…” he responded to a question in this regard.
The statement also takes on special significance given his decision on Monday not to attend an EU presidential summit in Asunción, Paraguay.
His absence was harshly criticized by Uruguayan President Luis Lacalle Pou, who publicly expressed his dissatisfaction with the situation.
Milley is critical of the current functioning of the EU and is seeking to highlight his differences, particularly with Brazilian President Luiz Inacio “Lula” da Silva.
Payment of bonuses and commitment of Javier Mire
Milei also used social media to connect with fans to reiterate His government will meet all debt obligations as they come due.
“It always pays off”Asked whether he would cancel the AL30 bonds due in January 2025, he wrote in capital letters.
It should be remembered that on Tuesday, July 9, the government paid $1.6 billion in interest, which reduced total reserves to $28,345.
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