BUENOS AIRES– Argentine President Javier Milei announced on Saturday a new monetary policy that will be implemented starting on Monday, aimed at zero currency issuance in order to achieve the revaluation of the peso.
“We are going to make the peso extremely scarce (…) from now on the monetary base in Argentina will not grow any more. This is textbook,” the president argued in an interview with LN+.
Milei also stressed that the scarcity of the peso will prevent a devaluation.
The Argentine president said, “We have closed the tap on the issue of dollar purchases. Due to the regulations of the exchange market in the MULC (Single and Free Exchange Market), we must buy dollars, we inject pesos and what we will do is sterilize those pesos by placing dollars in the market, thus ensuring that the amount of money remains constant,” he explained.
“The dollar is rising, but the government continues to buy foreign currency, which will strengthen the country’s reserves. In addition, the country is financially comfortable, so the end of the exchange rate restriction is getting closer,” he said.
Milei acknowledged that these measures will cause difficult times. “These will be difficult months in the exchange market, since during the harshest winter we lose more dollars for energy. We will surely have to endure fluctuations,” he warned.
Source: With information from Europa Press
