Low exchange rates and high interest rates | This fund sets the course for the government for the months to come

He International Monetary Fund Published the final document with the remainder of the eighth review of the expanded agreement with Argentina. The organization said the country has to move forward Opening of exchange controls and considered that the returns should be achieved to international debt markets. The entity celebrated the government’s ultra-conservative policy but said major challenges remain in materializing successful results. Meanwhile, the executive hopes the praise will translate into fresh money in favor of Miley management.

The credit organization noted that “some Macroeconomic imbalances and obstacles to growthand a difficult road of adjustment remains ahead. Policies need to be improved to build on the progress made so far. “Efforts to broaden political and social support for reforms as well as to protect the most vulnerable must continue.”

The Fund assured that one of the main challenges for the economic team is related to changes in monetary and exchange policies. He classified, “Monetary and exchange rate policies need to be developed to continue the disinflation process and further improve reserve coverage.”

The unit said that “to support transition to a new monetary system, Where price and financial stability remain the primary objectives of the Central Bank and people can freely use the currencies of their choice, the real interest rate must be positive to support the demand for pesos and deflation.

Meanwhile, he said that “the Exchange rate policy should also be more flexible To reflect the fundamentals, and to safeguard against disinflation as well as reserve accumulation, in particular capital flow management measures (CFM) are gradually relaxed as conditions permit. In turn, he said that “further steps are needed to define the key foundations of the new monetary regime, as well as to begin the development and implementation of a framework for status-based flexibility of exchange controls.”

The IMF, while celebrating the full scope of the program’s action, emphasized its risks Conservative politics “Risks remain high, requiring agile policymaking. Contingency planning will remain critical, and policies will need to adapt to changing outcomes to safeguard stability and ensure that all program objectives are met,” he said.

The credit institution’s report elaborates that “impressive progress has been made to reach .” Fiscal balance Overall, priority should now be given to continuing to improve the quality of fit. At the same time, he said, “Efforts should continue to reform the personal income tax, rationalise tax subsidies and expenditure, and strengthen expenditure control. Deep reforms of the tax, pension and income distribution systems, including the elimination of distortionary taxes, will be important.

At the level of the real economy, he believed that “there should be more focus on this.” Improvements at the micro level “This will help support the recovery and accelerate potential growth.” He specified that “the proposed reforms aimed at improving competitiveness, increasing the flexibility of the labor market and improving the predictability of the regulatory framework for investment are steps in the right direction, and their approval and careful implementation should be a priority.”

The IMF supported the Officials focus on rebuilding outdoor mattressesBecause it is important for regain access to international financial markets By the end of 2025 (or earlier, if possible), with the aim of better managing external obligations (without increasing net debt).

Regarding this last point, he considered that in the coming years the Argentine authorities will continue to focus on further reducing fiscal and external spending in order to gain access to international capital markets, “with the aim of doing so, if possible, at the end of 2025 or better, before the end of the year” in order to manage the large foreign exchange obligations that are to come, while avoiding an increase in indebtedness.