“There have been policy slippages and delays, which have contributed to strong domestic demand and a weaker trade balance. As a result, the performance criteria of the end of June 2023 were not met” (IMF)
- Exchange and monetary policy: Measures have been taken to encourage the liquidation of exports and contain imports in the short term. The rate of crawl – rate of advance of the official dollar – will continue to be used to preserve competitiveness and support reserve accumulation objectives. To sustain demand for pesos and cope with high inflation, the authorities will continue to ensure that monetary policy rates remain sufficiently positive in real terms.
- Fiscal policy: The primary fiscal deficit target for 2023 remains unchanged at 1.9% of GDP. Meeting the target requires further tightening of fiscal policy in the second half of this year, supported by a series of agreed revenue and spending measures, protecting priority social and infrastructure programs.
- financing strategy: The agreed fiscal path does not imply an additional dependence on direct monetary financing of the fiscal deficit. Recent successful voluntary debt swaps have significantly reduced refinancing risks and are expected to support the mobilization of additional net domestic financing during the remainder of the year.
- Bookings: The agreed policy package seeks to increase reserves for the remainder of this year, in line with a cumulative net international reserve accumulation target of around USD 1 billion by the end of 2023.
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