This Monday, it was day 1 of the “Third Stage” of the Caputo Plan announced last Friday after the agreement with the Fund is confirmed. The Minister of Economy, had announced a devaluation of the peso, in “flotation bands” of between $ 1000 and $ 1400, and the exit of the exchange rate, necessary condition imposed by the Board of Directors of the International Monetary Fund to approve the new agreement for US $ 20,000 million.
At 10 am, the official exchange market opened to $ 1250 per dollar (with some inconveniences in the Home Bankings), the National Bank had leaked the price 5 minutes before the opening. In this way, the price of the dollar rose 13.9%, of the $ 1097.5 that had closed last Friday. At the end of the day the price was $ 1230, closing a 12% increase in the official exchange rate.
The devaluation may lead to a price increase, which further thickens the purchasing power of wages and retirement. As it transpired in some media, there was caution in construction corralones that did not sell their products due to lack of prices and in some supermarkets the remarkation was up to 10%. From the Rosario supermarket chamber they also showed concern with the increase in products, since consumption fell 14% for 2024 without recovery views for this year.
Balance of the first day of the band scheme. The official dollar reached $ 1230. The government does not want to admit it, but it is a leap of the price of almost 15%. Some forecasts – I included – pointed to a greater jump. But this will have a strong impact on prices
– Esteban Mercatante (@Emercatante) April 14, 2025
As for the reserves, the Central Bank did not intervene in the exchange market with foreign exchange, since the price “floated” between the intervention bands ($ 1000- $ 1400) during the day. However, reserves fell $ 421 million, to US $ 24,305 million, a minimum from January 18, 2024. thus accumulating lows of US $ 747 million so far this month and a loss US $ 5.302 million in the year.
#DataBCRA | #Varablecambiarias
Find the list of #Avariables In: https://t.co/g9kllo93ed#ReservasBCRA pic.twitter.com/v6mzHGBcO4— BCRA (@BancoCentral_AR) April 14, 2025
The supervision of the US Treasury Secretary and the “celebration” of the markets
This Monday, in addition, Milei received Scott Besent, the head of the United States Treasury. The official supervised the day from the Ministry of Economy and the Casa Rosada, who after the meeting supported the “triple adjustment” of the government: “they implemented an important tax adjustment, an important monetary adjustment and on Friday they announced a significant exchange adjustment. The IMF has assigned 20,000 million dollars. The World Bank has assigned them 12,000 million dollars, and wanted to come today to show my support for President Milei and his commitment to what I rescue Argentina from the abyss, ”said Besent.
The holder of the Treasury also assured that Argentina must cancel the SWAP with China if it manages to accumulate reservations. It is necessary to clarify that the Chinese swap currently represents 72% of gross reserves, around 18,000 million dollars. “I think, as this administration maintains its inflexible economic policy, they should eventually have enough currency entries to pay it,” said Bessent, while discarding a line of credit from the American treasure to the libertarian government.
For their part, the markets celebrated the agreement and reacted positively after weeks in red for the country’s economic instability, deepened by the Trump Tariff War. Thus, Argentine shares rose up to 18%in Wall Street, headed by Banco Supervielle and Banco Macro (+19.5%) and South Gas Transporter (18.9%). The bonds bouncing up to 10% and the S&P Merval index of the Buenos Aires Stock Exchange earned 4.7% in pesos. The country risk closed the day at 890 points.
They celebrate that you, I and millions are going to be poorer. That great entrepreneurs will increase their fortunes. That the country will be more tied to the US. They are dependence, backwardness and decline. They celebrate slavery no matter how much they talk about “freedom” all day. pic.twitter.com/6GHzwvj2Bp
– Eduardo Castilla (@Castillaeduardo) April 14, 2025
On the other hand, in the morning in a radio interview with Majul, Milei demanded from the field the liquidation of the grains since it warned the end of the decline of exports withholdings (driven in February) for June that would be returned from 26% to 33%. The current devaluation benefits exporters, with a rate of exchange greater to the “Blend dollar” to which it could liquidate (80% to the official exchange rate and 20% to the CCL), quoted at $ 1130.
The scams are not paid: not to a new submission agreement
While speculators, bankers and businessmen celebrated the new agreement, wages and retirements lose purchasing power. The last inflation data of INDEC shows a jump to 3.7% and the second consecutive month of Suba. With an important rise of 6% in non -alcoholic foods and drinks. For April, the consultants expect 5% price increase, and it is not ruled out that the current devaluation, being in the middle of the month also impacts in May, climbing even more.
The new agreement and the old IMF recipes implies new attacks against working majorities, poor people and retirees. Devaluation and conditioning with fiscal austerity (cuts) policies and regressive counter -reforms (labor, pension, tax) try to tighten the pegs on the working people even more.
The CGT has given the government, 80% of the peers signed by the unions in 2025 were down. It is necessary that it is not in an isolated strike and impose a true struggle plan, the widest mobilization until the non -payment of the debt is achieved and defeat Milei’s plans and the International Monetary Fund.
Source: www.laizquierdadiario.com
