The Minister of Economy, Luis “Toto” Caputo, launched harsh criticism against “economists” and opposition leaders who openly call for a devaluation of thepeso as a way to improve Argentina's competitiveness, and defended the economic direction of the Government of Javier Milei based on activity, reserves and inflation data
.
During his presentation at the Rosario Stock Exchange, Caputo was forceful in rejecting that position and harshly questioned those who hold it: “We have to finish eating the story that to be competitive you have to devalue, I find people who say that to be pathetic,” he said.
He added: “It almost seems to me that they are kidding people, I don't know if they're doing it because they're being paid, out of ignorance. Is that the proposal you have as economists? A country that has devalued from 1 to 1,400 in the last 25 years, is it really their solution to devalue? Those who ask to devalue make me want to kick everyone in the ass.
” Minister Luis Caputo.
The purchase of reserves
The statements are given in a context in which the Central Bank continues to purchase reserves. So far this year, the monetary authority has already acquired more than USD 4 billion, exceeding 40% of the goal set for 2026, which is USD
10 billion.
Despite this scenario, the dollar remains stable and did not experience shocks in the first months of the year. According to Caputo himself, without the intervention of the Central Bank to buy foreign exchange, the exchange rate would be around 1,100 pesos
.
Faced with criticism about the level of activity, the minister insisted that the analysis should focus on official data, since these accurately reflect the economic situation. In this regard, he said that resistance to the economic program usually intensifies when improvements begin to
show.
Caputo stressed that the Milei Government made progress without resorting to measures that marked previous crises, such as the Bonex plan, the confiscation of deposits or the playpen, and stressed that private property was respected. In addition, he highlighted the international recognition received by the Argentine president
. President Javier Milei.
Economic Activity and Inflation
In relation to economic activity, the minister stated that “12 of the 16 sectors that make up GDP show growth”, and noted that private consumption, exports and agricultural production reached historic levels. With these data, he sought to reinforce the idea of an ongoing recovery in large sectors of the productive apparatus
.
Regarding inflation, Caputo questioned the idea that the Government should choose between stabilizing prices or avoiding recession. He explained that the economic contraction began in June-July 2022 and reached its lowest point in the first half of 2024, in a context where inflation was accelerating
.
According to the minister, after the uptick in activity, inflation began to fall, and he projected that this trend will continue in the coming months. In this context, he anticipated a scenario of sustained growth accompanied by a progressive slowdown
in prices.
In this way, Caputo reaffirmed the Government's economic strategy, flatly rejected devaluation as a tool and focused on indicators as a basis for evaluating the evolution of the program.
