Argentina says IMF asked for 100% devaluation after primary elections

After the primary elections on August 13, the International Monetary Fund (IMF) proposed a 100% and, subsequently, a 60% devaluation of Argentina’s currency, as communicated by the spokesperson for President Alberto Fernández.

The final adjustment settled was 20%, in line with the actual 22% devaluation executed by Argentina’s government following the primary elections.

In these elections, libertarian economist Javier Milei garnered 30% of the votes. The IMF publicly supported the Central Bank’s decision to adjust the currency valuation.

Argentina’s Economy Minister and presidential candidate, Sergio Massa, is scheduled to visit Washington on August 22-23 to discuss further financial allocations with IMF officials.

Argentina awaits the IMF board’s approval, scheduled for August 23, for a US$7.5 billion disbursement to address debt obligations from Mauricio Macri’s administration (2015-2019).

A subsequent disbursement of approximately US$3.25 billion is anticipated in November, during potential second-round presidential elections.

The agreement with the IMF from July 28 covers Argentina’s fifth and sixth of ten scheduled audits, based on a pact signed in March 2022.

In the current agreement, Argentina commits to maintaining this year’s deficit at 1.9% of its Gross Domestic Product (GDP).

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