Luis Caputo, the Minister of Economy, presented his views on the impact of policies in central economies on emerging countries such as Argentina at an investor forum in the United States. In a talk about “Leaders in Finance” in Los Angeles, he is scheduled to meet with the head of the Monetary Fund, Kristalina Georgieva. During his presentation, which was not broadcast to the press, Caputo discussed the “risks and challenges” faced by developed economies and their effects on developing countries. The focus of the conference was on political priorities, investments, and regulatory approaches that can boost growth in the face of pressing economic challenges.
The decision of the US Federal Reserve to keep its official interest rate unchanged at 5.25% to 5.50%, which is at its highest level in 23 years, could have significant consequences for Argentina. This decision could strengthen the dollar and weaken prices of Argentine agricultural products, making debts denominated in dollars more expensive. As a result, it may encourage capital outflows towards better returns, creating pressure on negotiations with the IMF as Caputo seeks a “new program” and fresh funds worth $15 billion to lift stocks.
Caputo traveled with other officials to participate in a global conference organized by the Milken Institute where they will engage with a wide range of participants such as former President Bill Clinton and Joe Biden’s regional advisor among others. At home, however, there are cross-pressures around managing exchange rates liquidity stocks as government aims to avoid inflation acceleration and reduce Central Bank debt but this approach clashes with Fund’s request for different course action.
As Argentina faces significant financial obligations throughout the year there are critics who challenge government’s economic policies with Milei being a point of controversy among orthodox economists and former officials. Despite these criticisms President has defended government position while navigating through economic difficulties ongoing negotiations with IMF