The Central Bank (BCRA) reported that it will lift the stocks to the dollar and apply a scheme of exchange bands between A range of $ 1,000 and $ 1,400. It is a devaluation. The devaluation blow is a blow to the income of the working people by inflationary route. The final result of any devaluation is a transfer of income from those who live from their salaries or other income not indexed by inflation towards the most concentrated capital.
The official dollar closed this Friday at $ 1,097.50. As of Monday, it will move between a floor ($ 1,000) and a roof ($ 1,400). If the official dollar this Monday reaches $ 1,400 it would mean an increase of 27.6%. The band scheme was already applied during macrismo. This scheme had been one of the key pieces of the government agreement with the IMF. The abandonment of said policy did not respond to its success, but precisely to its failure.
The government ended up imploring an agreement to the IMF, which once again imposed its conditions. In December 2023 Milei and Caputo announced a megadevaluation, then advanced with a plan to keep the anchor in the exchange rate, with a much lower devaluation pace than inflation, lowering access to the official dollar. Thus they benefited the importers and generated more pressure on the reserves of the Central Bank, while generating large businesses for large capitals with the financial bicycle. Caputo sought to endure without devaluing until the elections, but after the $ Libra scam, instability in the “markets” increased, the sangria of reserves continued, and the international panorama creaked (thanks to the friend of President Donald Trump) which forced Milei to yield to the pressures of the “markets” and the fund, which requested a devaluation. In 2025 the country already had difficulty getting commercial currencies, in a year where debt maturities with private creditors begin to be more important than in the previous years.
They sold that with the chainsier inflation was lowered (it rose to 3.7 in March!) And the investments came: the hard blow is in employment, retirements and salaries, not in the caste. Caputo says that everything is barbaric and that this is a new phase of the plan. But then …
– Nicolas del Caño (@nicolasdelcano) April 11, 2025
Argentina fell to the bottom in 2018, 7 years ago, and in those years several agreements were renegotiated, but the mortgage continues. Now Milei and Caputo closed a new agreement that will be for 10 years, a decade. It will be 17 years with the economic policy under audit of the IMF, which put dollars to ensure charges of other private creditors; Finance the capital escape although the statutes of the Fund prohibit it, and to continue paying the fund.
The Minister of Economy, Luis Caputohe thanked during the announcement to his economic team that worked behind the agreement, he also mentioned Leonardo Macdurwho was an advisor to Sergio Massa and is now Argentina’s representative before the IMF.
The official announcement occurs in a worldwide turbulence context linked to tariff ads by Donald Trump. This is shaking the bags of the world and economic relations between countries. There is a danger, true, globally, of greater inflation and of lower level of activity, without ruling out a recession. This will hit the local economy.
The new measures announced by the Government
According to a statement from the Central Bank, “Phase 3 of the Economic Program starts on December 10, 2023, in this new stage, (i) the price of the dollar in the free market free market (MLC) begins within a mobile band between $ 1,000 and $ 1,400, whose limits will be expanded at a rate of 1% monthly, (II) the Blend dollar is eliminated, the exchange dollar is eliminated. Human, the distribution of profits to shareholders from abroad is allowed from the financial exercises that begin in 2025 and the deadlines for the payment of foreign trade operations, and (iii) are flexible, the nominal anchor is reinforced by perfecting the monetary policy framework in which there is no issuance of pesos by BCRA for the financing of the fiscal deficit or for the remuneration of its monetary liabilities. “
The BCRA statement details that “the consolidation of the economic program will have the financial support of a new extended facility of funds (EFF) agreed with the International Monetary Fund (IMF) for USD 20,000 million, of which USD 15,000 million constitute disbursements of free availability in 2025. These liquid resources will serve to strengthen the balance of the BCRA through the repurchase of intransferable letters of the Ministry of Economy.
Meanwhile, the minister confessed to the press conference that there will be greater fiscal adjustment. Caputo said “that 1.3% of primary surplus that we had as a goal, this year we will take it to 1.6%. We are going to make a greater fiscal effort even in an electoral year.” The official added that “there is no need to do this, but it seems to us the best way to strengthen Argentines. We must have maximum fiscal and monetary orthodoxy”, that is, The cut in retirement, education, health, and public salaries will be deepened.
New horror story with the background
The government enabled the escape. The Central Bank also reported that it enables the distribution of profits to shareholders abroad from the financial exercises that begin in 2025 and the deadlines for the payment of foreign trade operations are flexible.
The IMF dollars will not be to improve the living conditions of the working class, with the previous agreements only poverty and unemployment increased. Since Macri agreed on the Stand By loan until the end of 2023 there were 8 million new poor in the country. It must be remembered that Caputo was president of the Central Bank for three months in 2018 during the Macri government, and was then ejected at the request of the fund for raffle dollars and violate the statute of the agency.
The Macri government squandered much of the dollars of the IMF loan in capital escape, which, again, as in 2001, carried out the large Argentine companies, but which was favored by Luis Caputo’s policy, something that even Milei questioned saying that “Caputo was smoked more than 15 billion dollars.”
The government of the front of all could have objected the inherited debt barely assumed, but on the contrary, he validated it in Congress with a new agreement reached by MartĂn Guzmán with the fund. Dollars were also squandered to pay fictitious private debt in dollars. They were companies that asked for cheap dollars to the Central Bank to cancel their liabilities abroad. Under that modality almost US $25,000 million between 2020 and 2022, according to the Central Center. All this looting happened without the government of the front of all carrying out any investigation.
This government promised that it was not going to devalue, but the fund imposed a devaluation. March inflation accelerated and that happened before the announced devaluation. That is, inflation will hit a new jump in the coming months that will worsen the living conditions of popular majorities. There will also be more IMF adjustment demands and counter -reforms.
Last Thursday there was a strong national strike that showed that the working class has the strength to propose to defeat Milei’s plans and the great entrepreneurs. It is necessary that the fighting measures continue and that they are not isolated in the perspective of the general strike, until defeating the attacks and imposing an exit from the working class.
A different alternative that puts in the center the urgent needs of retiree, retirees, employees, of those who have no job, who end with the rate of tariffs and privatized, requires cutting the dependency ties with imperialism, requires breaking with the IMF and its impoverishing recipes, requires the sovereign ignorance of the odious debt with the lobos of Wall Street, and requires That all resources are oriented to a reorganization of the economy, under new bases, through democratic planning, from below.
Source: www.laizquierdadiario.com
