Faced with exchange rate tensions, Batakis meets with the President and the economic team

The Minister of Economy, Silvia Batakisthis Sunday began a new cycle of meetings to advance in definition of your economic plan and preparation of the measures of emergency. Official sources confirmed that he will meet the President this afternoon, facing a decisive week in which new signs are expected in the face of the tensions generated by the currency crisis and inflationary pressures.

The Government is concerned about the difficulties in containing the loss of reserves and the increase in prices, aggravated by the latest restrictions on the payment of imports, by the disruptive exit of Martin Guzman and the new wave of observations. Alberto Fernández spoke out yesterday against “an onslaught of concentrated powerful groups who want to keep all revenues, who want to cause a devaluation and maximize their profits”.

The minister held a 10-man summit with part of the economic team in the Palazzo del Tesoro. She was in a meeting with the Secretary of Economic Policy, Karina Angeletti, the Secretary of the Treasury, Martín Di Bella, and her counterpart for Internal Trade, Martín Pollera, with the representatives of the Ministry of Productive Development, the heads of AFIP and ARBA, Mercedes Marcó del Pont and Christian Girard, and the second vice president of Banco Nación, Federico Sanchez, together with the entity’s chief economist, Haroldo Montagú.

“Batakis called an economic coordination meeting,” Economy reported, without specifying the names of the participants or the reasons for the meeting, although it is assumed that it was for address a broad agenda, which could include the evaluation of the measures on the financial program and the issuance of debt securities in pesos, as well as the analysis of the controls in place on foreign trade and tax evasion.

After taking office last Monday, the new official was only able to formalize his team this Friday and held its first cabinet meeting on Saturday, so he was unable to travel to Tucumán to attend the President-led Independence Day event. In his first steps, the official ensured compliance with the program in his contacts with the IMF and held a series of meetings with the corporate sector.

The challenges of Silvina Batakis

A major concern of the government is showing a downward trend in prices. After lowering inflation from 6% in April to 5.1% in May, June could return an equal or greater value, while in July it could reach 7%. June data will be released this Wednesday and could trigger a new rate hike and exchange rate, two measures requested by the Fund. Economists predict a minimum inflation of 76% per annum.

On the other hand, in a week marked by uncertainty and the negative reaction of the markets to Guzmán’s resignation, the blue dollar closed this Friday at 273 dollars and the liquidated cash dollar – which companies use to produce foreign currency – has arrived. at $ 300.40. The Central Bank sold $ 100 million, despite a communication released Thursday banning banks from quoting expenses in dollars in free shops.

In a Saturday act, Cristina Kirchner spoke again of “bi-monetary economy”, the dollar and inflation in a speech in which he accused the former Minister of Economy of the currency crisis, still unresolved despite the landing of Batakis with the support of the vice president, Daniel Scioli, Sergio Massa and Alberto Fernández. “It was an immense act of political irresponsibility and also an act of institutional destabilization,” the head of the Senate said.