Finance Prof
Well-known member
Argentina and the IMF: Can This Marriage Be Saved?
Before agreeing on a new program, the 23rd in their convoluted history, the IMF and its main borrower should do some honest soul-searching.Non Paywall Version:
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Argentina and the IMF: Can This Marriage Be Saved?
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Digital Nomad
Well-known member
It seems like a really toxic relationship. It seems like dollarization would be impossible under the IMF. I wonder how long Milei will keep saying he will do this? I don't really understand all the ins and outs of all of this. But I doubt the IMF would be ok with taking millions and just manipulating the exchange rate which it seems like that is what the Central Bank of Argentina is doing.
Pink Panther
Well-known member
Don't worry @Digital Nomad. Even the experts don't understand all of this or know how things will end up. Doubt the IMF would ever let Argentina dollarize the economy. At least not any time soon.
Betsy Ross
Well-known member
Many bankers have been saying for a while now the peso was overvalued. You can see what happens when the Central Bank stops propping up the peso. Should be over 1,500 soon. The peso is overvalued.
Digital Nomad
Well-known member
Well the Nobel prize talk was probably premature.I guess Milei figured out that he isn't going to get that Nobel Prize after all.
But the price of Pringles has gone done quite a bit since a few months ago. Now they are less than they cost in the USA at least.
Tell me where I can find Pringles at that price... I'm a fan of those chips, LOL. They've been pretty expensive lately. 😕
Digital Nomad
Well-known member
I saw them at Dia at that price.
Long story short, Milei doesn't know and anyone's guess. The peso is over inflated.
www.batimes.com.ar
Milei says he would slow crawling peg if inflation cools further
President Javier Milei says peso could weaken at a slower pace if inflation cools to a certain level.
www.batimes.com.ar
lemonade
Member
Doesn't sounds like a new deal with the IMF will be reached any time soon. I guess the exchange rate might get worse until new funds come in from the IMF?
Well the IMF is standing by their man.
www.batimes.com.ar
IMF backs negotiator who drew Milei’s ire in Argentina aid talks
Managing Director Kristalina Georgieva "has full confidence" in top negotiator Rodrigo Valdés despite criticism from President Javeir Milei.
www.batimes.com.ar
Spend Thrift
Well-known member
IMF worsens Argentina's 2024 GDP forecast.
IMF worsens Argentina’s 2024 GDP forecast to 3.5% drop - Buenos Aires Herald
The Fund also predicted a 140% annual inflation rate for this year and 5% growth for 2025
buenosairesherald.com
Betsy Ross
Well-known member
Argentina needs to just do all it can to get the IMF loan paid back and not take on any more debt with them.
Blockchain
Well-known member
This seems like a really dysfunctional relationship. I don't understand why they gave out billions to Massa to finance things and spending was out of control. Milei actually is making progress and they won't give more funds. Seems like the IMF prefers Peronists. Now I understand why most Argentines hate the IMF. They seem like bloodsuckers that want to keep Argentina dependent on them.
import export
Well-known member
It is a very dysfunctional relationship. But IMF is probably Argentina's only shot. No one else would dare bail Argentina out. Caputo looks like he had a good meeting with head of IMF. Maybe Caputo's sucking up of calling her the "best IMF Director ever" will help.
Caputo meets with Georgieva, calls her ‘best IMF director ever’ - Buenos Aires Herald
The Fund’s managing director said it supports the government’s efforts to ‘turn the economy around’
buenosairesherald.com
Billy Goat
Well-known member
Well Caputo just met with Janet Yellen. Hat in hand. Let's see if USA gives any $$$$.
Digital Nomad
Well-known member
IMF says unlikely to give fresh funds. Wants the Central Bank to build up reserves instead of trying to control exchange rate.
Fresh funds for Argentina unlikely if changes are not made, former IMF official says - Buenos Aires Herald
Alejandro Werner stated that the Fund has ‘doubts’ about the economic program due to exchange restrictions and monetary policy
buenosairesherald.com
CFK came out today to speak against Milei.IMF says unlikely to give fresh funds. Wants the Central Bank to build up reserves instead of trying to control exchange rate.
Fresh funds for Argentina unlikely if changes are not made, former IMF official says - Buenos Aires Herald
Alejandro Werner stated that the Fund has ‘doubts’ about the economic program due to exchange restrictions and monetary policybuenosairesherald.com
Milei’s adjustment is unsustainable, says former Argentine president - Prensa Latina
Buenos Aires, Sep 6 (Prensa Latina) President Javier Milei's fiscal adjustment is inconsistent and unsustainable because it is achieved through non-payment of debts and the withdrawal of the State from functions essential for the survival of Argentina, warned today former president Cristina...
www.plenglish.com
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