Luis Caputo, lead economist for Argentina’s President-elect Javier Milei, outlined a new financial strategy to bankers in Buenos Aires.
He announced that Milei’s administration, starting December 10, would not immediately lift currency controls.
Instead, they aim for dollarization as a key goal in the coming years. This update is based on input from two anonymous sources close to the discussions.
In a gathering with about 30 banking experts and consultants, Caputo, who is experienced in Wall Street practices, detailed Milei’s economic strategy.
He stressed the importance of attaining a fiscal surplus by 2024. This approach significantly changed Milei’s earlier, more immediate pledges during his campaign.
These promises included replacing the Argentine peso and dismantling the central bank.
Milei, distancing himself from his previous stance, has also stepped back from key advisor Emilio Ocampo, a strong proponent of dollarization.
In a similar vein, Carlos Rodriguez, another former advisor known for his aggressive views, declared his non-participation in the government via social media.
Investors, initially enthusiastic about Milei’s election victory on November 19, have reacted positively.
This optimism is reflected in the rising prices of Argentine assets, signaling market approval of Milei’s moderated approach.
An Argentine Banking Association (Adeba) representative labeled the recent meeting with Caputo as “very positive.”
The spokesperson highlighted the pro-market perspective provided on handling the central bank’s debt challenges.