The announcement by the Minister of Economy, Luis "Toto" Caputo, about the imminent signing of an agreement with the IMF for a 20 billion dollar loan marked the most relevant news of the day and had an immediate impact on the markets, boosting the rise of bonds and the reduction of country risk.
In that context, President Javier Milei gave statements to radio El Observador, where he explained the benefits of the agreement and rejected the versions of the "econochantas and mandriles" about a devaluation.
"Is there absolutely no way there will be a devaluation?" asked journalist Luis Majul. To which the President replied firmly: "But obviously, the issue here is that there is a shortage of pesos, not dollars." For this reason, he considered that "talking about the exchange rate is irrelevant."
Javier Milei, presidente de Argentina.
Additionally, the President highlighted that this new IMF financing "doesn't increase the debt because it is taking those funds from the BCRA to pay the debt that the treasury has with the Central Bank."
In the same vein, he added: "This implies that by improving the backing of the circulating pesos, the currency strengthens. And this has never happened before, the debt will decrease after this because we will be able to cancel even more debt."
Regarding the recent fluctuations in the financial dollar exchange rates, Milei raised the tone of his analysis: "We must be clear about how all this happened, it's not just economics, there are other things here... Here politics is mixed in and this is much more delicate than what might be happening in the market. There was an attempt at an institutional, political, street, and market coup."
Javier Milei, presidente de Argentina.
To support his claim, the President pointed out: "Days ago in Congress, Kirchnerism attempted a coup from the institutional path. It happens that 'Che Cristina' is nervous because Cassation denied her appeal and she already knows she is going to jail. This is the fact... Mrs. Cristina Fernández de Kirchner knows she is going to jail. Consequently, she does what is called burning the ships."
According to President Milei, the recent violent disturbances were financed by Kirchnerist mayors as part of that destabilization attempt, which included actions on different fronts: "Through the institutional path, through violence, taking over the streets, and then through the market."
