Both parties held a meeting that lasted 45 minutes, which they rated as productive. The director-general of IMF said Argentina was going through a difficult moment.
Silvina Batakis, the Argentine Minister of Economy, recently talked to officials of the International Monetary Fund (IMF). She told them that she supports the program outlined by that country and the organization.
That happened after a video call following the meeting between Batakis and Alberto Fernández at the Casa Rosada. There they finished defining the course of economic policy after the unexpected departure of Martín Guzmán. It includes the projection of a new agreement with the credit institution.
Before the virtual meeting, the IMF managing director, Kristalina Georgieva, said the organization would continue supporting Argentina.
There is a concern in Washington and on Wall Street due to the change of minister, as Batakis relates to Kirchnerism. Since that political sector has criticized the agreement, they fear she will set aside the program.
These meetings between the government and the IMF occurred after the last change in the Cabinet. Meanwhile, the Argentine president, Alberto Fernández, prepares the agenda for his first meeting with Joe Biden in July.
One of the main issues will be the credit of Extended Facilities with the international organization. They will focus on seeking support for a renegotiation that is still uncertain.
Another Argentine Official Resigns from His Office
Economist Martín Pollera will replace Guillermo Hang, who resigned from the Secretary of Commerce. The former has already worked alongside the new Minister of Economy, Silvina Batakis.
Martín Guzmán requested Hang to come to office on May 23rd. Until then, that economist from La Plata was on the board of the Central Bank. Pollera is also a graduate of the University of La Plata.
The government will announce the final list of Cared Prices with their new values before knowing the June inflation. The INDEC will disclose next week the consumer price index for last month, which private consultants place around 5.4%.
Argentina Has an Unstoppable Country Risk Level
The country risk level of Argentina rose to an intraday record of 2,728 basis points as distrust of the domestic economy has grown. It has been the highest country risk since May 26th, 2020 (2,778 units), before the public debt swap with private creditors.
That indicator of the JP Morgan bank came from a maximum of 2,652 units. The sovereign bonds in US dollars with foreign law, the Globales, crashed on Wall Street by between 11% and 13% due to changes in economic governance.
The Central Bank of the Argentine Republic (BCRA) sold about 90 million US dollars in the wholesale market. They wanted to compensate for a high demand to cover payments for energy imports exceeding USD 100 million daily.
The amount transacted (around USD 500.5 million) in the cash (spot) segment was significant again. That figure reveals the processing of more foreign currency for imports, restricted in the last week of June. The volume traded in the official market was recently over USD 1 billion.
Amid the weakening of the Argentine economy and fiat currency, the crypto market maintains its bearish trend. The leading cryptocurrencies, Bitcoin (BTC) and Ether (ETH), have recovered slightly over the last 24 hours. It is only a matter of time to know where the price of these assets will head next.
By Alexander Salazar
