Argentina Implements Drastic Economic Reforms: Peso Devalued and Subsidies Cut
Argentina's new Economy Minister, Luis Caputo, announced a series of measures aimed at addressing the country's severe economic crisis, including a 50% devaluation of the peso to 800 per dollar, cuts to energy subsidies, and the cancellation of public works tenders. The plan, implemented by the government of President Javier Milei, aims to reduce the fiscal deficit and bring down inflation, which is currently nearing 150%. The International Monetary Fund (IMF) welcomed the measures as a step towards stability, while markets responded positively with the stock index hitting a record high and sovereign bonds rising over 2%. However, there are concerns about the ability of Milei's coalition, which has limited representation in Congress, to implement the necessary cuts without causing social unrest.