After the release of the April inflation index, equal to 8.4%, the Government prepared a package of 9 measures, others could be added, which they seek to alleviate the unbridled price escalation and avoid a new run on the dollar. Rate increases, greater intervention on the foreign exchange market, opening up to imports of certain items and the creation of a super control body to detect “abusive” findings are some of the decisions that Sergio Massa sets in motion.
The main measure is a 6-point increase in the fixed-term interest rate to 97% a year, still below the annualized inflation rate of 108.8%. The Central Bank had already increased it by 10 points, from 81 to 91%, after the currency run at the end of April. Evaluate the monthly nominal will thus pass to 8% and the effective annual one to 152%.
Here are the 9 measures adopted so far, one by one:
raise the rate
The Central Bank takes the annual rate of 97% which implies 8.08% effective monthly and 154% annually. This way they try to keep the pesos from going to the dollar.
“To stimulate consumption” reduce Now 12’s rate by 9 percentage points. They account for 5.8 million monthly trades for $250,000 million.
It’s a super organism to detect “abusive” increases. of prices. It will centralize online information from Customs, AFIP, Trade and BCRA, among others.
Discussions with the IMF for frontloading disbursements will be accelerated; with China, through swaps, and with the BRICS countries, to facilitate imports from Brazil.
The central bank will manage the peg crawling (gradual devaluation of the peso against the dollar) of the official exchange rate. Last night the rhythm was not defined.
He Central Market will add the role of direct importer to its business food. It will do it at zero fee. There will be more controls in the operations.
THE AFIP will launch a new payment plan of up to 84 installments for the current debt of companies and individuals with the agency and there will be tax relief measures.
Relax anti-dumping rules reduce the effective import price of some popular inputs and import goods from abroad.
They will be public/private for the purchase of food products. Any local business can be a shareholder by contributing funds for centralized procurement.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.