# Javier Milei's Policy Agenda in Argentina: A Comprehensive Analysis

## Introduction

Javier Milei, Argentina's libertarian president, has implemented one of the most radical economic and political reform agendas in the country's modern history since taking office in December 2023.

His approach combines severe austerity measures, market liberalization, and institutional restructuring aimed at addressing Argentina's chronic economic crisis, characterized by hyperinflation and fiscal instability.

## Economic Reforms

### Shock Therapy and Austerity Measures

Milei's economic strategy centers on what he terms "shock therapy" - a rapid and dramatic restructuring of Argentina's economy.

Key components include:

- **Currency Devaluation**: Milei devalued the Argentine peso by over 50% against the US dollar, aiming to align the official exchange rate with market realities and curb inflationary expectations.

- **Subsidy Elimination**: The president eliminated substantial energy and transportation subsidies that had long distorted market prices but were politically popular.

# Javier Milei's Policy Agenda in Argentina: A Comprehensive Analysis

## Introduction

Javier Milei, Argentina's libertarian president, has implemented one of the most radical economic and political reform agendas in the country's modern history since taking office in December 2023.

Title:

Content: November 25, 2023

Following Sunday’s election results, Javier Meili is set to become Argentina’s president on December 10. Among other things, President-elect Miley has vowed to replace the peso with the US dollar, a policy known as dollarization. Some critics have argued that dollarization would deplete the Argentine central bank’s US dollar reserves, making dollarization excessively costly and ultimately resulting in hyperinflation. However, in leveling this criticism, they misinterpret Argentina’s current economic situation and fail to consider real-world cases of dollarization during an inflationary crisis.

The risk of hyperinflation in Argentina is not due to Javier Miley’s advocacy of dollarization. Instead, it is the result of years of bad monetary policies. Inflation has been rising steadily since 2007, long before Miley proposed dollarization (and almost anyone in Argentina even thought about the possibility of dollarization).

Some experts argue that, by international standards, Argentina is already experiencing hyperinflation. According to Philip Kagan’s seminal 1956 study, most economists define hyperinflation as an inflation rate greater than 50 percent monthly. To put this in perspective, the average annual inflation rate in Europe between 1950 and 1955 was 5.1 percent. In Kagan’s words, a hyperinflation country experienced monthly price increases that were ten times greater than the price increases experienced by a typical European country in a normal year.

The monetary policy landscape is very different today than in the years immediately preceding Kagan’s study. Over the five-year period ending January 2020, just before the pandemic, the EU’s average annual inflation rate was just 0.98 percent. Using Kagan’s ratio, this would mean that a country experiencing at least 9.8 percent inflation per month has hyperinflation. Argentina saw monthly inflation rates of 12.7 percent and 8.3 percent in September and October, respectively. Therefore, adjusting Cagan’s hyperinflation threshold to reflect general improvements in monetary policy elsewhere would reveal that Argentina is already experiencing hyperinflation. While there is certainly potential for further decline, critics of dollarization need to acknowledge just how serious Argentina’s inflation is in the context of the modern global economy.

International experiences show that dollarization and hyperinflation are interconnected issues, but this is not the case according to critics of dollarization. For example, Ecuador adopted dollarization in January 2000 to prevent hyperinflation. Ecuador’s dollarization proved effective. Dollarization immediately brought Ecuador’s inflation rate into alignment with that of the US and then kept it stable over the next decade, despite economic challenges and two sovereign debt defaults. Another compelling example is Zimbabwe, which adopted dollarization in January 2009 to combat hyperinflation. The result was also successful, with inflation reaching US levels by January 2010. As these cases show, dollarization may be a solution to hyperinflation. Argentina could also either resort to dollarization to prevent hyperinflation, or avoid it if inflation gets out of control.

The risk of hyperinflation in Argentina stems not from an intention to create a dollar but from a central bank that appears unable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent and not easily secured. For better or worse, dollarization offers the safest path to avoid monetary collapse. This provides Argentina with an opportunity to implement much-needed reforms and move forward on a sustainable development path. Dollarization may make things worse before they get better. But to argue that monetary reform that is supposed to tame inflation will lead to hyperinflation is a distorted view of Argentina’s economic reality.

nicholas kachanowski

Dr. Kachanowski is Associate Professor of Economics and El Paso Woody L. Hunt is the director of the Center for Free Enterprise at the University of Texas in the College of Business. He is also a Fellow of the UCEMA Friedman-Hayek Center for the Study of a Free Society. He served as President of the Association of Private Enterprise Education (APEE, 2021-2022) and on the Board of Directors of the Mont Pelerin Society (MPS, 2018-2022).

He received his Licentiate in Economics from the Pontificia Universidad Católica Argentina, his M.A. in Economics and Political Science from the Escuela Superior de Economía y Administración de Empresas (ESADE), and his Ph.D. M.A. in Economics from Suffolk University, Boston

Dr. Kachanowski is the author of Reflexions sobre la economia argentina (Instituto Acton Argentina, 2017), Monetary balance and nominal income targeting (Routledge, 2019), and co-author Austrian Capital Theory: A Modern Survey of Essentials (Cambridge University Press, 2019), Capital and Finance: Theory and History (Routledge, 2020), and Dollarization: Una Solution for Argentina (Editorial Claridad, 2022).

Dr. Kachanowski’s research has been published in outlets such as Journal of Economic Behavior and Organization, public choice, Journal of Institutional Economics, Quarterly Review of Economics and FinanceAnd Journal of the History of Economic Thought among other outlets.

Get notified of new articles from Nicholas Kachanowski and AIER.

Source: www.aier.org

Title:

Content: Argentina ’ s new president: More than 5,000 civil servants will be fired
Written by external sources (international)
Published: Updated:
On December 26, local time, the current President of Argentina, Javier Milei, announced that he will not renew his contract with government employees hired before his inauguration in 2023.
The new government estimates that more than 5,000 workers have been laid off.
The decision quickly sparked a new round of protests against its economic reforms.
Millet said the decree was part of a plan to fight Argentina ’ s poor economy and rampant inflation.
There are reports that Argentina ’ s inflation rate is expected to reach 200% by the end of the year.
Millay believes Argentina ’ s already struggling economy can be transformed by sweeping cuts in government spending and a currency devaluation program.
Under the decree, the authorities will review the contracts of government employees hired before January 1, 2023 within the next 90 days.
The January 1, 2023 deadline will be set in response to his predecessor ’ s actions to raise wages for government employees in his final year.
In addition, the layoffs are not targeted at all government employees, and according to the relevant regulations, civil servants in the Argentine government who have a statutory quota or are considered "indispensable" civil servants will be exempt from the layoffs.
Members of the Argentine construction trade union UOCRA take part in a demonstration against the economic reforms of Argentina ’ s new president, Mirai, near the Justice Palace in Buenos Aires, Argentina, on December 27, 2023. (Reuters)
According to estimates by the Argentine Civil Service Union, the number of national employees will be higher than the government's figures, and the final number of employees will be more than 7,000.
It is expected that this change will have some impact on the national government of Argentina.
According to the latest data from the Argentine Ministry of Labor, there are nearly 3.5 million employees in the public sector in Argentina, of which the federal government has 338,000 employees, about a tenth of the total.
According to a report by consulting firm Ieral-Fundación Mediterránea, 2.2% of Argentina ’ s GDP is used to pay wages to federal employees.
That share has been declining since 2015, when it reached 3.3%.
According to the report, the proportion of government employee wage expenditure in the budget is similar to that of Nordic countries as well as Japan and Germany.
The order is part of a series of decrees signed by Millet.
He has depreciated the Argentine peso by more than 50% against the US dollar, slashing transport and energy subsidies and abolishing or suspending 366 decrees to ease economic controls.
Millet believes that by implementing “shock therapy ”, Argentina has the ability to deal with growing poverty and ultimately solve Argentina ’ s hyperinflation problem.
Millet ’ s new dismissal order further provoked a strong reaction from opposition parties, trade unions and social organizations, triggering a further escalation of protests in Argentina.
Argentina ’ s new president, Javier Milei, waves to the crowd on the balcony of the Casa Rosada after attending the inauguration ceremony in Buenos Aires, Argentina, on December 10, 2023. (Reuters)
Thousands of union members and activists took to the streets of Buenos Aires, Argentina ’ s capital, on Wednesday to protest against the government ’ s economic and fiscal policies. Argentina ’ s civil service workers described the layoffs as “aggressive ” and said public officials were“ carrying out their indispensable tasks. ”
“Don ’ t expect us to accept even if only one person is fired, ” the union ’ s secretary-general, Aguiar, warned.
Argentine activists have previously expressed doubts about the legality of Millet's decree during protests: whether Millet can bypass the legislature, which has few seats for his party, and implement these economic reforms and layoffs in the form of emergency decrees.
According to the latest election results, although Millet won the presidential election, his Liberal Progressive Party now has only seven seats in the Senate (26 seats for the ruling coalition, out of 72) and 40 seats in the House of Representatives (114 seats for the ruling coalition, out of 257).
Members of the Workers' General Confederation and other social organizations attend a demonstration outside the Justice Palace in Buenos Aires, Argentina, on December 27, 2023, against the economic reforms of Argentina 's new President Javier Milei. (Reuters)
Reports indicate that more than six people have been detained in Buenos Aires as a result of the protests.
In response to the ongoing protests, Millet said he was prepared to hold a referendum if Argentina ’ s parliament ultimately rejects a package of urgent economic reforms that includes the dismissal of the 5,000 civil servants.
In the interview, Millet insisted that his decree was supported by 75 percent of Argentinian citizens, but he did not specify which polling agency he cited.
According to the report of the local Argentine media Página / 12, more than half of Argentine citizens (54.4%) did not support the relevant policies proposed by Millet in a public opinion poll on the 22nd.
This opposition caused his approval rating to drop by 6% to 54% in just 12 days after taking office.
This article is authorized by the Observer Network

Title:

Content: International
International news.
Argentina considers austerity reforms, protests outside Congress like a battlefield
(Ming Pao News) Argentina ’ s Senate on Wednesday (12) initially approved the controversial austerity economic reform plan proposed by far-right President Milai, during which opponents violently demonstrated outside the country ’ s parliament, throwing gasoline bombs and burning cars, and police used rubber bullets, tear gas and water cannons to disperse.
The office of the president of Argentina condemned the "attempted coup by a terrorist organization".
Miley ’ s proposed economic reform package included declaring a one-year state of economic emergency to allow him as president to dissolve some federal agencies and privatize about a dozen public companies, including Aerolíneas Argentinas.
Other measures in the reform package include raising the threshold for receiving minimum retirement subsidies and weakening labor protection.
The bill originally received a vote of 36: 36 in the Senate, and finally on Wednesday night, Vice President and Senate President Vera Ruhr cast a vote in favor, breaking the deadlock and being passed by the whole. The Senate will then consider the provisions of the bill on a case-by-case basis and then submit it to the House of Representatives for final vote.
Congressman injured in hospital
Some protesters criticized the bill as including measures that hurt labor rights and set Argentina back 100 years.
The health department said seven protesters were hospitalized in pepper spray, including five lawmakers, and dozens of injured people were treated at the scene.
Security sources said at least 20 police officers were injured and 15 others were arrested.
Argentina is facing economic problems such as ultra-high inflation of 300%, and Miley has promoted radical “shock therapy ” since he took office in December, including cutting half of cabinet posts and 50,000 public jobs by executive order.
(AFP / BBC / Reuters)
Related Words: Austerity Policy Economic Reform Javier Milei Inflation in Argentina
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Title:

Content: Argentina's president says to make a "paycheck lottery", 3 million people snatched her lucky win.
Posts Tagged ‘ CTWANT ’
Argentina's new president Javier Milei has previously said that if he is elected president, he will dismantle the ruling class, close the government and the central bank, and donate his $3,200, equivalent to about NT $94,000 in salary, and he also said that he will do so, using his Instagram account on the 15th to conduct a "live lottery", but the amount is the last monthly salary of Mirei as a member of about 2.1 million. Argentine pesos, equivalent to about NT $78,000.
"This is my last salary as a public representative because I now have a new job," Mirei told the public in a live broadcast of the 15th, the economic liberal and fiscal conservative president took office, first as a member of the last monthly salary lottery, won by a woman named Gomez, according to World Nation News, about 3 million people participated in the lottery that day.
Originally, Mirei 2 years ago when he ran for the election, he promised to donate his monthly salary after the election to the people's lottery, and after the end of the previous 24 monthly salary lottery, Mirei will publish the transfer certificate on the social platform.
Miley, a 53-year-old economist who has been president of Argentina just two years after entering politics, has pledged to donate his salary: “When I ran for Congress, I promised to donate my salary … as I kept my promise as a representative, and I will continue to do so as president. ”
Born in 1970, Mireille ’ s college year coincided with Argentina ’ s hyperinflation of 1989, which led him to move from being a rock band lead singer and football goalkeeper to an economist determined to study the economy.
After being elected to the Argentine House of Representatives, Mirei gave his monthly salary to the public through a lottery to realize his idea of returning money to the public.
After December 10, Mirei intends to use Mirei economics to vigorously rectify the Argentine economy, he also said in the live broadcast on the 15th, the first task at this stage is to end the vicious inflation crisis, while calling on the people not to be crushed by pessimism.
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His approach combines severe austerity measures, market liberalization, and institutional restructuring aimed at addressing Argentina's chronic economic crisis, characterized by hyperinflation and fiscal instability.

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Content: People 's Network > > International
Foreign Ministry Spokesperson Zhao Lijian presided over a regular press conference on June 10, 2022
June 10, 2022 19: 27 | Source: Ministry of Foreign Affairs website
Small number
In a speech at the Ninth Summit of the Americas, leaders of Argentina, Dominica, Dominica and Belize criticized the US for excluding Cuba, Venezuela and Nicaragua from the summit as "inexcusable" and "incomprehensible".
What is China's comment on this?
Zhao Lijian: I have taken note of the relevant statements made by the Latvian participants.
I also noted that, on the sidelines, Cuban President Díaz Canel said that the Summit of the Americas was a "show" with "neo-colonial overtones" and serving the internal affairs of the United States.
President López López said that Mexico should not remain silent in the face of hegemonic policies.
The Americas must enter a new phase of abandoning exclusionary policies.
Venezuelan President Nicolas Maduro said the era when the United States saw Latin America as a “backyard ” is over.
The United States should not turn a deaf ear to the legitimate concerns and righteous voices of most countries in the region, he said.
The United States should abandon the outdated "Monroe Doctrine" complex and hegemonism as soon as possible, stop bullying and blockade sanctions, and develop relations with regional countries on the basis of mutual respect, equal treatment and non-interference in each other's internal affairs.
Today marks the 23rd anniversary of the end of NATO's bombing of Yugoslavia.
In response to the 15 tons of depleted uranium bombs dropped by NATO last year, 3,000 victims of depleted uranium bombs have entrusted an international team of lawyers to file a lawsuit against NATO.
However, NATO claims to have immunity.
What is China's comment on this?
Zhao Lijian: Twenty-three years ago, the U.S.-led NATO flagrantly launched a 78-day bombing campaign against Yugoslavia without the approval of the United Nations Security Council.
NATO dropped nearly 420,000 bombs, including 15 tons of depleted uranium, killing more than 2,500 people, including 79 children, and more than 1 million refugees.
Sadly, the death and suffering caused by the war on the ground are still being bequeathed to this day and continue for generations to come.
Some 30,000 people in Serbia suffered from cancer in the 10 years since the bombing, and more than 10,000 of them died.
According to the Belgrade Institute of Public Health, as of the end of 2019, the number of registered cancer cases in Serbia was as high as 97,000.
Research by the Serbian Emergency Center shows that after 1999, children born in the country have more ectodermal tumors from 1 to 5 years of age, more malignant blood diseases from 5 to 9 years of age, and the incidence of brain tumors from 9 to 18 years of age has increased sharply.
In addition, as of May 2019, 366 Italian soldiers involved in NATO military operations have died of cancer and 7,500 have suffered from the disease.
However, the United States, which sent military aircraft to deliver depleted uranium to Serbia, was also the inventor and sole user of the depleted uranium bomb.
However, the United States has so far denied that depleted uranium bombs are the direct cause of the "Gulf War Syndrome" and "Kosovo War Syndrome".
The United States dropped depleted uranium bombs in Iraq during the Gulf War and that was even more gone.
NATO is also trying to get away with so-called immunity.
NATO ’ s approach is shocking.
The Serbian people will not accept this, nor will the people of the world who seek justice.
The United States and NATO should deeply reflect on their own war crimes and give reasonable explanations and compensation to the victims of depleted uranium attacks at an early date.
NATO should also learn lessons and refrain from creating new turbulent divisions around the world.
Bloomberg: The World Health Organization Advisory Group released a report saying that more information and more research are needed to investigate whether the virus that caused the global COVID-19 outbreak originated in the Wuhan laboratory incident.
They also said there was a need for further research on a market in Wuhan, another suspected source of the virus.
What is the comment of the Foreign Ministry?
Zhao Lijian: China's position on the tracing of the source of the new coronavirus is consistent and clear.
China has always supported and participated in global scientific traceability, and at the same time firmly opposes any form of political manipulation.
Since the outbreak of COVID-19, China has twice received international experts from WHO to carry out tracing cooperation in China, forming a scientific and authoritative joint research report, which has laid a solid foundation for global tracing.
After the establishment of the WHO International Scientific Advisory Group on the Origin of Novel Pathogens, China nominated experts to participate in the advisory group, and organized experts to share their research results with the WHO secretariat and advisory group on many occasions.
China is the only country that has invited the WHO international expert group to conduct cooperation on tracing the source of the new coronavirus, and the only country that has organized experts to share the progress of tracing the source with the advisory group.
On the issue of tracing the origin of the new coronavirus, China has shared the most data and research results.
This fully reflects China's open, transparent and responsible attitude, as well as China's support for the work of WHO and the Advisory Group.
First, the research of traceability must adhere to scientific principles and should not be subject to political interference. The "laboratory leak" is a lie concocted by anti-China forces for political purposes, and there is no science to speak of.
The Chinese side has invited the WHO international expert group to visit relevant laboratories in Wuhan, and the joint study report has clearly reached the conclusion that "laboratory leakage is highly unlikely."
Since the report of the advisory group proposed to investigate national biological laboratories with early cases around the world, the next stage should be to investigate highly suspicious laboratories such as Fort Detrick and the University of North Carolina.
Second, the international scientific community has more and more clues pointing to the source of the virus on a global scale, and WHO and the Advisory Group should attach great importance to these clues, effectively cooperate with relevant countries, and share the research results with all parties in a timely manner.
Third, in accordance with its mandate, the advisory group should pay more attention to the risk of emerging infectious diseases and pandemics in the future while doing a good job of tracing the origin of the new coronavirus.
Recently, the United States, the United Kingdom, Canada and other places have seen the emergence of unknown causes of childhood hepatitis and monkeypox, which have aroused great concern in the world.
The WHO and the Advisory Group must act as soon as possible.
In conclusion, we hope that the WHO Secretariat and the Advisory Group will uphold an objective and impartial stance and make due contributions to global scientific traceability research and solidarity in the fight against the epidemic.
China Daily: On June 9, local time, the special investigation committee of the US House of Representatives on the riots on Capitol Hill held a hearing, declaring the riots on Capitol Hill an "attempted coup."
What is China's comment on this?
Zhao Lijian: The impact on the US Capitol more than a year ago shocked the world and triggered widespread concern and strong doubts among the American people and the international community about American-style democracy.
Such an event in the United States is an "attempted coup."
Such events in other countries are “beautiful landscapes ” and“ color revolutions. ”
This once again exposed the essence of political manipulation by the United States using the double standard of democracy.
I would like to emphasize that there is no superior democracy in the world.
Labelling, politicizing, and weaponizing democracy will only harm others.
The United States should deeply reflect on its own "democratic deficit" and earnestly stop its erroneous words and deeds that create turbulence and division in the world under the guise of democracy.
Shenzhen TV reporter: We have noticed that there are reports quoting sources that the United States troops illegally stationed in Syria recently stole oil from the Syrian oil fields they seized and smuggled out of the country for profit.
Syrian Oil Minister Ahmed Thumeh condemned the US actions as banditry.
What is China's comment on this?
JH: I have also noticed the reports.
This is reminiscent of the operation of the United States to wantonly occupy 7 billion dollars of life-saving money for the Afghan people 20 years after the invasion of Afghanistan.
The Syrian crisis has dragged on for more than a decade.
The US military and economic intervention in Syria has never stopped.
According to statistics, from 2016 to 2019, 33,584 civilians died in Syria, and in 2017, the US military launched the so-called "most accurate air strike in history" against the Syrian city of Raqqa, killing 1,600 civilians.
At least 13 people, including six children and four women, were killed in a U.S. military raid on Idlib province in February.
Regrettably, instead of reflecting on its responsibility for war crimes, the United States Government has made a blatant attempt to plunder Syria's national resources, thus exacerbating the humanitarian crisis in Syria as never before.
According to the latest data, 90 per cent of the Syrian population lives below the poverty line, two thirds of the population depend on humanitarian aid for their livelihood and 55 per cent lack food security.
The Syrian people's wealth has been openly seized by the United States, and they themselves lack opportunities for development due to US sanctions.
The Syrian people lament the suffocating acts of banditry and the economic blockade by the United States.
Under American hegemony, it is not only Freud who cannot breathe, but also the Syrian people, the Afghan people, and the people of countries suffering as a result of US military intervention.
The international community is increasingly aware that under the packaging of the US "rules-based international order", there is a "hegemonic heart based on the supremacy of US interests."
China News Agency: According to reports, the European Parliament passed a resolution on June 9, saying that there is a "serious risk of genocide" in Xinjiang.
What is China's comment on this?
Zhao Lijian: The spokesman of the Chinese Mission to the European Union and the Foreign Affairs Committee of the National People's Congress (NPC) have already responded to this.
The so-called Xinjiang resolution of the European Parliament has ignored objective facts and legal common sense, deliberately smeared and smeared China, grossly interfered in China's internal affairs, and flagrantly violated international law and the basic norms governing international relations.
The Chinese side strongly condemns this and firmly opposes it.
In essence, the Xinjiang issue is not an ethnic, religious or human rights issue, but an issue of anti-terrorism, de-radicalization and anti-secession, which concerns China's sovereignty, territorial integrity and national security.
Over the past 60 years, the Uighur population in Xinjiang has grown from 2.2 million to 12 million, and life expectancy has increased from 30 to 74.7 years.
The so-called resolution of the European Parliament is based entirely on the lie of the century deliberately concocted by the extreme anti-China forces, which is another absurd farce to slander and smear China.
These lies and farces cannot change the good situation of stability and unity in Xinjiang.
The so-called Xinjiang resolution adopted by the European Parliament is a lie with open eyes.
The relevant members of the European Parliament should respect the facts, stop using the Xinjiang issue to engage in political manipulation and interfere in China's internal affairs, and stop using human rights as a pretext to provoke ideological confrontation.
China will continue to firmly safeguard its own sovereignty, security and development interests.
Bloomberg: According to Al Jazeera TV, the Czech parliament is discussing whether to withdraw from the "16 + 1" cooperation mechanism.
Some commentators said that the move reflected the general lack of satisfaction with the cooperation mechanism in some Central and Eastern European countries.
What is the comment of the Foreign Ministry?
Zhao Lijian: China-CEEC cooperation is a trans-regional cooperation platform built by China and Central and Eastern European countries, including the Czech Republic, which has made positive contributions to the realization of win-win cooperation and common development between China and CEEC countries.
China-CEEC cooperation, together with bilateral relations and China-EU relations, has become the three major platforms for China-CEEC relations, and has become an important part and useful complement of the China-EU comprehensive strategic partnership.
In 2021, the trade volume between China and 16 Central and Eastern European countries rose against the backdrop of the COVID-19 epidemic, reaching a record 133.55 billion US dollars, an increase of 32% year-on-year, far higher than the increase in trade volume between China and the EU in the same period.
Facts speak louder than words.
The above achievements are only a microcosm of the fruitful cooperation between the China-CEEC cooperation mechanism over the past 10 years.
This data also comes from public sources.
Any unbiased person will come to the conclusion that China-CEEC cooperation is pragmatic and effective.
This year marks the 10th anniversary of the launch of China-CEEC cooperation.
China is willing to work with Central and Eastern European countries to take this important historical moment as a new starting point and jointly promote the cooperation mechanism to further deepen and better benefit the people of all countries.
The spokesman has repeatedly commented on the US biological laboratory.
We also noted that the United States has just issued a "list of facts", referring to the United States' efforts to help Ukraine and other countries reduce weapons of mass destruction.
What is China's comment on this? Is this a response to the question raised by the international community?
Zhao Lijian: I have taken note of the relevant documents issued by the US Department of Defense.
The document talks a lot about Ukraine's compliance, but it overstates the United States' own compliance.
On some of the issues of greatest concern to the international community, such as whether the United States uses its cooperation with Ukraine to carry out activities that are incompatible with the Biological Weapons Convention (BWC)?
What is the "sensitive information" that Ukraine cannot disclose under the US-Ukraine cooperation agreement?
How many biological samples have the US taken under the US-Ukraine agreement and what are their uses?
The United States did not mention anything in this document.
As I have repeatedly stressed, the United States is the country with the largest bio military activities in the world and the only country that opposes the establishment of a verification mechanism for the Biological Weapons Convention (BWC).
Recently, Russia further disclosed the US bio-military activities in Ukraine and explicitly accused the United States of violating the Biological Weapons Convention (BWC).
According to the treaty, the United States has an obligation to clarify this issue in order to restore the confidence of the international community in the United States' compliance.
We once again urge the United States to act responsibly and provide comprehensive and specific clarifications on the compliance of the United States itself, not Ukraine, and to cease its exclusive opposition to the establishment of the verification mechanism of the Biological Weapons Convention.
(Edited by: Gao Ge, Liu Hui)
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What economic issue did Milei want to address?

## Economic Reforms

### Shock Therapy and Austerity Measures

Milei's economic strategy centers on what he terms "shock therapy" - a rapid and dramatic restructuring of Argentina's economy.

Title:

Content: RAE RANGE, THE WORLD 'S MOVEMENT
RAE Mandarin Program (Click to read)
Welcome to RAE Argentina to the world of Chinese program, I am the host Lina JI.
Our website: www.rae.com.ar, where you will find shortwave radio programming schedules, you can listen to the AM, FM and RAE signals of most Argentine national radio stations due to the daily streaming.
You are welcome to send the report to qslrae @ gmail.com, we would also like to receive the audio and video of you listening to RAE, so you will receive an electronic QSL card from Argentina to the world.
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(b)...
- La influación continuúa descendiendo en Argentina: según cifras oficiales, fue del 11% en marzo
President Millet heads the Emergency Committee on the Israeli-Iranian Conflict
Argentina ’ s Inflation Continues to Decline: According to Official Data, Inflation Rate in March Was 11%
Nearly 200 people have died from dengue fever in Argentina.
Police raid on Mexican embassy in Quito illegal for Ecuadorian judiciary
Haiti sets up transitional council after weeks of leaderless government
- Sports: League Cup Phase 1 is over and the top eight spots have been decided
President Javier Millay heads the Emergency Committee on the Israeli-Iranian Conflict.
He, along with ministers, analyzed the situation after Iran fired more than 200 drones and missiles into Israeli territory.
The meeting was attended by Israel's ambassador to Argentina, Eyal Serra, who then thanked Mile for his invitation and for his support for Israel.
After the meeting, the Rose Palace issued a statement saying: "Argentina strongly supports the State of Israel in defending its sovereignty."
Within this framework, the Government ordered the strengthening of security in approximately 100 strategic locations, particularly those related to the Jewish community.
The ministry also ordered the temporary closure of four embassies in Israel, Iran, Syria and Lebanon.
Because of the tensions in the Middle East, the President abruptly suspended his visits to the United States and Denmark and returned home.
The meeting came hours after the president learned that Argentina's judicial system had ruled Iran responsible for two of the worst terrorist attacks on Argentina.
The criminal Supreme Court ruled that Tehran orchestrated the 1992 bombing of the Israeli embassy and the 1994 bombing of the AMIA Jewish mutual fund.
The Court also found that the Lebanese militia Hizbullah had carried out these attacks in the city of Buenos Aires, which in total killed more than 100 people.
· · · ·
The dengue outbreak has killed nearly 200 people, according to the latest report from the Ministry of Health.
According to the same source, the number of confirmed infections has now exceeded 269,000.
The worst-affected area remains the central region, where nearly 60 per cent of cases are concentrated.
In recent days, coinciding with a drop in temperature, the infection curve has dropped slightly.
But the Department of Health has called for vigilance over possible high temperatures, which favour the breeding of mosquitoes that transmit the virus.
Inflation in Argentina continues to fall, according to the official statistics agency INDEC.
According to its latest estimates, prices rose 11% in March.
Thus, according to INDEC data, the downward trend was verified after 25% in December, 20% in January and 13% in February.
For Economy Minister Luis Caputo, the slowdown in inflation was “the result of a plan implemented by President Mile after he took office in December. ”
At the same time, some industries questioned the negative impact of public spending cuts and condemned the decline in people ’ s purchasing power.
On the one hand, universities are calling for a march on April 13 to demand more budgets in response to what they condemn as the impending paralysis of universities due to lack of funding.
In addition, the main trade union CGT has called for a general strike on May 9, which will be the second strike since Mile took office.
Labor Minister Julio Coldero criticized such coercive measures, describing them as "outdated recipes."
He expected the government to keep wage growth above inflation, but called for the responsibility for price increases in the wage agreement.
The Ecuadorian judiciary found the police raid on the Mexican embassy in Quito illegal.
It was the ruling of Ecuador's national court on the arrest of former Ecuadorian vice president Jorge Grasse, who was taking refuge in the Mexican embassy.
The court held that the arrest should have been approved by the Mexican embassy.
But the judge decided Glass must be in prison for corruption.
On the orders of Ecuadorian President Daniel Noboa, police raided the Mexican embassy on April 5.
According to Quito, Mexican authorities ignored several requests to hand over the former vice president, who did not qualify for “political persecution. ”
For its part, the Mexican government announced that it would denounce Ecuador's violation of its embassy sovereignty to the International Court
After weeks of discord, Haiti's Prime Minister Ariel Henri resigned, and a transitional council was established.
The main political parties in this Caribbean country are represented in this body.
One of its objectives is to restore order in the face of a serious crisis of violence and the fact that much of the territory is under the control of armed criminal groups.
More than 1,500 murders were recorded between January and March, according to the United Nations.
In addition, the airport in the capital Port-au-Prince remains closed following gang attacks.
The transitional council also plans to set the date for the general election in 2025, which will be the first in a decade.
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Sports
The group stage of the League Cup, the first tier of Argentine football, has been decided.
In Group A, the following teams have a chance to advance to the quarterfinals: Argentina Youth, Baracas Central, River Plate, Taleres Cordoba, Independiente and Velez.
Meanwhile, Group B's Godoy Cruz de Mendoza has secured the line.
The other three seats in the area are contested by the student team, Boca Juniors, Athletic Club, Defending Justice and Lanus.
Despite this, Lionel Messi returned to the Miami International as a starter with a 3-2 win over visiting Kansas City.
The captain of Argentina's national team came on from the start and scored a goal.
· · · · · · · · ·
America is news.
· · · · · ·
Noboa insists he has no regrets over the raid on the Mexican embassy in Ecuador
(b)...
Mile says Argentina could be like Germany after 20 years of reforms
.....
Brazil calls on parties to Iran-Israel conflict to exercise maximum restraint
... and...
Ecuadorian President Daniel Noboa has assured that he does not regret ordering an attack on the Mexican embassy in Quito to arrest Jorge Grasse (2007-2017), vice president of the Mexican government of Rafael Correa who granted asylum.
In an interview with Australia ’ s SBS channel last week, Noboa said it was the first time the president had interacted with the media since the crisis in Ecuador and Mexico erupted.
Faced with an almost unanimous international condemnation of the breach of the inviolability of the embassy, Noboa said he did so because his administration believed Mexico was the first country to violate international law.
"We have to act, we have to make a decision because we know Douglas has an escape plan," Noboa declared.
He added: "We condemn the use of embassies by some governments under the guise of political sanctuaries, which are in effect impunity, and embassies become places that allow criminals to escape punishment."
The President of Ecuador recalled that the Caracas Convention on Asylum provided that asylum could not be granted to persons prosecuted in ordinary courts for ordinary crimes.
An arrest warrant and preventive detention were issued for the former vice president following a strong earthquake in 2016.
In this case, he was charged with embezzlement in connection with a reconstruction project.
(b)...
Argentina ’ s president, Javier Milei, said in an interview with ultra-conservative American host Ben Shapiro that with reforms, Argentina could become like Germany in 20 years, which aired on April 14.
In a nearly hour-long conversation with the journalist during the president's recent visit to the United States, Millet noted that he wanted his country to embrace Western values again and "become a developed country again."
"In fact, based on the reforms we introduced in the first month, if all the reforms continue to work, Argentina will improve its ranking by 90 places, and in two decades Argentina may become like Germany," Millet said in an interview.
The president also stressed that if there were another election in his country today, he would win by a higher percentage than last year and win "in the first round."
Mr Millay said his increased popularity and voting intentions meant "the culture war is bearing fruit and Argentines have decided to mature, put on long pants and start doing the right thing once and for all."
.....
On April 15, the Brazilian government called on all parties to the conflict between Iran and Israel to exercise maximum restraint and urged the international community to "mobilize to avoid an escalation of the war."
"Brazil calls on all parties concerned to exercise maximum restraint and calls on the international community to mobilize efforts to avoid an escalation of the situation," the note from Brazil's foreign ministry noted.
Brazil also urged its compatriots in these countries to “follow the guidelines published on the Brazilian embassy ’ s electronic website and social networks. ”
Since the outbreak of the war in the Gaza Strip, the government of President Luiz Inácio Lula da Silva has warned about the potentially devastating potential of the expansion of hostilities in the West Bank and other countries.

Title:

Content: Argentina's inflation edges up in June, breaking monthslong streak in blow to President Milei

A closely watched measure of inflation in Argentina remained stronger than the libertarian government of President Javier Milei would have hoped

ByISABEL DEBRE Associated Press
July 12, 2024, 5:29 PM

BUENOS AIRES, Argentina -- A closely watched measure of inflation in Argentina remained stronger than the libertarian government of President Javier Milei would have hoped on Friday, as the official statistics agency reported prices edging up in June and breaking a monthslong streak of declines.

Argentina's consumer price index rose 4.6% in June, slightly up from the rate of 4.2% in May, ending a five-month trend of cooling inflation that experts had attributed to a deepening recession brought about by Milei's brutal austerity scheme. President Milei has touted the falling prices over recent months as a key victory in his fight against Argentina’s worst economic crisis in over two decades.

When Milei became president last December, monthly inflation was peaking at 25%. But the price drop since hasn't offered much relief to ordinary Argentines as Milei presses on with a harsh austerity program that involves slashing generous energy subsidies, scrapping price controls and devaluing the Argentine peso.

Friday’s government report showed Argentina’s annual inflation slowing a bit to just over 271% — still among the highest rates in the world.

Surging electricity and gas prices accounted for most of June's inflationary spike, the statistics agency said. Argentines have reported eye-watering utility bills after years of paying highly subsidized rates under left-leaning governments.

In stark contrast to Milei's program, those past Peronist administrations fixed prices and printed billions of dollars’ worth of pesos to fund a large deficit — fueling chronically high inflation.

Under Milei, Argentina's energy ministry last month reported that low-income households that previously paid just 5% of the real cost of electricity have started paying a third of it while middle-income households now cover at least half following Milei's removal of subsidies. The government has also capped electricity consumption to qualify for subsidies, squeezing families as a cold front sweeps Argentina during the Southern Hemisphere’s winter.

The country's cost of living has surged nearly 80% in the first five months of 2024 compared to the same period last year, the report also showed. Prices in Buenos Aires shops and restaurants have reached levels comparable to the U.S. even as public salaries and pensions have been held down.

In further worrisome news for Milei, the peso on Friday fell to another record low against the dollar, hitting 1,500 on the black market after months of stability.

The steep fall in Argentina’s currency means the gap between the black market rate and the official exchange rate, currently 919 pesos to the dollar, has widened to over 50%. That complicates Milei's goal of eventually lifting Argentina's strict currency controls to restore investor confidence.

Milei's government wants the International Monetary Fund — to which Argentina already owes a staggering $44 billion — to step in with a new loan to support his plans to remove capital controls.

But as uncertainty remains over the future of Milei's economic program, the IMF dampened expectations of a new deal on Thursday.

“The staff will engage in discussions on a possible new arrangement as we would with any IMF member," the fund's spokesperson, Julie Kozack, told reporters Thursday. "At this stage, there is no specific timeline for those discussions.”

Title:

Content: Argentina depreciates currency after surprise primary election results
Cairo - Center Gate Tuesday 15 August 2023, 07: 34 am
Argentine financial authorities have devalued the local currency (peso) by about 20% in anticipation of fluctuations in the currency market on the back of surprise results achieved by far-right politician Javier Mille in the presidential election on Sunday.
Argentine central bank figures showed the peso trading at 365.50 to the dollar on Monday, compared with 298.50 on Friday.
This is the largest one-day decline in the official exchange rate since December 2015, according to AFP.
A political tsunami in Argentina
An outsider from the traditional political club, which has previously pledged to dollarize Argentina ’ s struggling economy, Milli fared better than expected in Sunday ’ s primaries.
Local media described the results as a “political tsunami. ”
In an electoral system unique to the region, Argentines voted to choose their preferred candidate among 22 presidential contenders, a measure that allows parties to choose their main candidate while allowing their popularity to be tested.
Argentina's primary election to choose presidential candidates
Argentine delegation heads to Washington to negotiate debt with IMF
Argentina to repay IMF loan in yuan
Milley received more than 30 percent of the vote, while the center-left coalition candidate Patricia Bolrich received 28 percent and Economy Minister Sergio Massa 26 percent.
President Alberto Fernandez is not seeking a new term in October ’ s election, with his popularity falling sharply amid inflation rising to 115 percent year on year, poverty rates rising to around 40 percent and the peso slumping.
Increased interest rates in Argentina
The government, which is suffering from a decline in foreign reserves, has imposed strict currency controls and raised import tax to get more dollars.
On the black market, hard currency, known as the "blue dollar", which is most available to residents and traders, was traded at about 680 pesos per dollar.
The central bank also announced on Monday a significant increase in the main interest rate on lending, from 97% to 118%, the third of its kind in five months.
The bank said the move would allow it to absorb "exchange rate expectations and minimize the impact on prices."
Treasury bills in dollars and Argentine stocks lost about 10 percent of their value on Wall Street on Monday.
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Title:

Content: Is there a way out for Argentine politics to turn left and right again?
Author: Zhou Xuan
Published: Updated:
Argentine politics is like a pendulum, swinging violently from left to right, and the frequency is accelerating.
Two years ago, Alberto Fernández, a leftist, defeated a neoliberal to win the presidency, chanting “We ’ re back, ” but he suffered a setback in the parliamentary election, making the Peronists lose their Senate majority for the first time in nearly four decades and the ruling party a lame duck in legislation. But the resulting potential policy wobbles have further deepened the predicament.
Can Argentina find a way out of its crippling foreign debt and inflation crisis?
Since Argentina left the military government in 1983, it has experienced 20 years of neoliberalism (mostly right-wing conservative and right-wing Belonism), followed by 12 years of leftist Belonism, four years of right-wing rule, followed by the election of Fernández two years ago.
But he was only halfway through his term, and the right wing quickly shot back.
According to the results of the mid-term parliamentary election on November 14, the ruling coalition lagged behind the right-wing coalition by 8 percentage points in the House of Representatives election, and 11 fewer than the other party in the half of the elected seats.
The outcome of the Senate election was even more decisive. The overall vote of the Belonists lagged by nearly 20 percentage points, the first time they had lost a majority in the Senate since the return to democracy in 1983.
Inferno and Epidemic
These results are not surprising.
Fernández inherited a rotten mess from his predecessor, Mauricio Macri: annual inflation of more than 40%, a raging exchange rate (80% devaluation of the peso over four years), and a new $44 billion in foreign debt to the International Monetary Fund (due in 2022 and 2023).
Such a bad start, coupled with natural disasters such as the COVID-19 pandemic, has devastated global markets, and Argentina, whose lives depend on commodity exports, has taken the brunt of the financial crisis further, becoming the first country in the epidemic to default on its debt in April 2020, its ninth default.
Subsequent developments follow the Beronists ’ inertia, with their emphasis on government intervention and welfare initiatives that run counter to the IMF ’ s principles of free and open markets and fiscal austerity, and their national sentiments often see agreeing to IMF conditions as yielding to foreign powers.
Argentina ’ s $44 billion debt with the IMF has yet to be negotiated despite a successful $66 billion debt restructuring with private bondholders last year. This stalemate not only cuts off the country ’ s access to more loans during the pandemic, but also threatens another sovereign default on its first major repayment day in March.
Argentines took to the streets in September to protest against Fernandez ’ s government. (Reuters)
At the same time, Fernández also had to fulfill the Beronists ’ welfare obligations to the working masses, and foreign debt was not enough to print money, but this was no different from quenching his thirst, and the annual inflation rate rose further to more than 50%.
And the welfare measures of a cup of water can not withstand the longest blockade he has imposed in Latin America, 4 million people have returned to poverty in the past two years, and the number of new coronavirus victims has reached 110,000. Adjusted by population size and close to the neighboring country of Brazil, which has caused public anger. And punishing the ruling party with votes.
Sadly, despite the public ’ s anger, the fate of the lame duck in Congress will only make it more difficult for the ruling party to move forward and lead Argentina out of its predicament.
At the same time, it also raises the possibility that the right will return to the Rose Palace after two years, bringing about a new round of policy changes, but in the light of history, such a rapid swing will often only further deepen the predicament.
Argentina, which has mandatory voting rules, will struggle to cast a bright future no matter how it votes.
Difficult to solve on both sides of the road.
At the end of the day, the dilemma facing Argentina is not a simple left or right line can solve, the country's vulnerability is like a porcelain man walking a wire rope, accidentally will fall to pieces, and the left and right line leaders every open policy turn, so that the wire shakes even more.
At the same time, the international environment may blow a headwind at any time, and no matter what route the porcelain people can not avoid the fate of being blown down.
From the perspective of the domestic economic structure, the most prominent problem in Argentina is the excessive dependence on agricultural exports, which accounted for 57% of the value of total export goods in 2019.
This is the product of the country ’ s centuries-old dependence on the Pampas steppe, a land of agro-pasture, and the failed “import substitution industry ” of the last century. Although Argentina was clearly aware of the need to develop industry, Juan Perón, who ruled in the 1940s and 1950s, drew up his first five-year plan focused on industry, his sweeping nationalization plan, universal trade unions, welfare populist policies and opposition. Foreign capital inflows stifled market dynamism.
The ensuing three decades of military rule and bloody repression of the Beronists also saw the country miss a golden period of development.
When the literati returned to power in the 1980s, the priorities for restructuring the economy gave way to two major debt crises – the first due to the military government ’ s excessive borrowing of petrodollars in the 1970s, and the second due to the collapse of the 1979 oil crisis, the second due to the right-wing Bayonne government ’ s excessive borrowing from the IMF in the late 1990s, and the Asian financial crisis.
However, in the context of China's rise as the world's factory, Argentina's development of industry at this time has no comparative advantage and lack of foreign investors, and can only be tied to the position of an agricultural power.
At the same time, the specter of Belonism continues to haunt the land and gain a supreme aura as a result of the military government ’ s repression.
Since then, the ruling Beronists have also made it easy to use welfare populism to attract votes, but this has often resulted in excessive financial burdens and short-sighted characteristics of “giving people fish ”, such as Cristina Fernandez de Kirchner ’ s government, which held power from 2007 to 2015, whose direct cash transfers to the poor reduced extreme poverty by 30%, but inflated currency. Inflation has engulfed the broad middle class, and its successors have since planted the root of high public spending, leaving them with little fiscal space to reform.
For the Argentines, the core of Peronism is actually the passion for the poor, and today ’ s Peronism has mostly left the spirit of welfare populism, as shown in the exhibition of the 100th anniversary of the birth of Mrs. Peronism at the Argentine Museum in 2019. (AP)
In the absence of the ability to adjust the economic structure and the wind of welfare populism to limit the space for fiscal policy, the country is like a boat in the international environment, and it is difficult to withstand the headwinds that are blowing at any time.
Both the 2008 financial crisis, the end of the commodities boom in 2014, the 2018 US-China trade war, and the 2020 epidemic have had a huge impact on the country, triggering a sharp decline in current project revenue and fiscal revenue.
In these circumstances, it is difficult for any government to resist the shortcut of printing money to make up for the fiscal hole, triggering a devaluation of the currency to boost its export advantage, but also drowning in inflation caused by the high import of industrial and consumer goods.
Worse still, in each of these downturns, the sword of Damocles is shaken by the huge extra debt, which is exacerbated by the fact that keen investors are withdrawing their capital when the situation is not good.
To this end, left-wing governments usually adopt capital controls, but such a restrictive environment has deterred investors from the beginning, and right-wing governments, while opening up markets, are more vulnerable in headwinds.
For example, although the Macri government traded the principle of free and open access to the IMF in exchange for historic high aid, it was intended to give Argentina a strong shot in the economy, but in 2018 due to the great environmental headwinds of the Sino-US trade war, and the US Federal Reserve raised interest rates and sucked US dollar capital back to the United States, which caused international investors to withdraw, causing the peso to devalue. This fragmentation only deepened the heavy debt burden.
From this, it can be seen that simple left and right lines are difficult to solve Argentina ’ s plight, and the fierce left-right line conversion will only make investors and the public more uncertain, tend to short-term speculation, and politicians often only take advantage of the short-term period of power to make a big profit, or short-sighted welfare policies to attract people.
Only by the rational policy design of depoliticization, the long-term stability of the domestic political atmosphere, and the blessing of the beneficial international market, can Argentina have a chance to gain a piece of life and jump out of the continuous cycle of crisis.
But how easy is it to talk about?

Key components include:

- **Currency Devaluation**: Milei devalued the Argentine peso by over 50% against the US dollar, aiming to align the official exchange rate with market realities and curb inflationary expectations.

Title:

Content: Argentina's central bank plans to cut peso to 350 against the dollar
Argentina has been experiencing an economic crisis for some time.
Ayman Azzam
8: 04 PM, Mon, 14 Aug 23
Argentina will cut its official peso exchange rate to 350 to the dollar, about 18 percent below Friday ’ s closing rate, a central bank official said on Monday.
The official added that the central bank would also raise its key interest rate to 118 percent from 97 percent currently.
Politics of the Argentine Central
The changes come after right-wing candidate Javier Milley won the main primaries on Sunday.
Argentina has been suffering from an economic crisis for some time and is expected to enter a recession this year with annual inflation exceeding 115%.
The International Monetary Fund backed the country with a record $44 billion bailout under former President Mauricio Macri.
But the deal was renegotiated and refunded under former president Alberto Fernandez.
On Aug. 1, Argentina owed $454 million to the IMF as interest on the loan, but the total rose to $775 million when additional fees related to the large debt volume were added.

Title:

Content: What are the new $20 and $50 thousand bills that Milei wants to launch in Argentina for?

#thousand #bills #Milei #launch #Argentina

When the $2 thousand bills were launched Argentine pesos –the largest denomination today in Argentina– was equivalent to 4 dollars ($3,500 Chilean pesos). Today that value was reduced by half.

Due to this devaluation of the trans-Andean peso, and taking into account a long claim from banking entities and small businesses, the Central Bank studies issuing bills of $20,000 and $50,000. This was also anticipated by the president, Javier Milei, in statements to the media.

What are the new $20 and $50 thousand bills for in Argentina?

In May, as revealed by Perfil, the $2,000 bill was enough to buy 4 kilos of sugar; 5.7 liters of milk or 1.5 kilos of common minced meat. Now, that same bill is enough to buy 1.5 kilos of sugar; 3 liters of milk and half a kilo of common minced meat.

If it were issued today, a $20,000 bill would be enough to buy 2.8 kilos of roast; 5 kilos of dry noodles and – if you are lucky enough to get them – 10 packages of rice.

Also proof of the loss of the value of money and the purchasing power of income, particularly pensions, is that a minimum pension would be equivalent, just the $50,000 tickets. With the payment of the January bonus, it would be three bills.

“In one year, with this inflation, they will be worth less than half

For economist Christian Buteler, the issuance of new bills is positive, “because the highest denomination is worth two dollars, and it is very difficult to manage the daily economy in that way.”

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Buteler added to Perfil, that “If you want to fill the car’s tank, for example, you have to go with a lot of bills., because also the banks do not circulate the $2,000 ones. These bills are kept because they prefer to have less physical space occupied in the vaults,” he added.

Another difficulty that arose, even several months after they entered into circulation of Argentine banknotes of $2,000, is that many ATMs are not yet updated to read them, which makes procedures such as deposits difficult and more cumbersome.

On printing of $20,000 and $50,000 bills Argentine pesos, which in practice is the recognition of a price increase that does not give up, Buteler clarified that “whether this is going to be enough or not will depend on inflation. Hopefully, the bills will be released in the second half of next year, and we have to see how much they devalue until they are released. In a year, with this inflation, they will be worth less than half”he explained.

“Let’s hope that it is enough, because that would mean that they have managed to lower inflation, but that is something that we will see over time,” concluded the economist.

Inflation complicates the new Argentine banknotes

For now, projections for the first half of 2024 are not encouraging.

According to private studies, due to the liberalization of prices of goods, prepaid bills and services, in addition to the removal of subsidies, inflation in the first three months of the year will be double digits and similar to that of December, which closed around 30%. .

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Therefore, If it were issued by March, the new Argentine banknotes would have lost much of their value.

In addition to the expected inflation, the other difficulty for printing banknotes is funds: Argentina owes 30 million to different external suppliers who are dedicated to printing $1,000 and $2,000 bills.

Small and medium-sized companies welcome the initiative. “We have repeatedly insisted on the importance of printing higher denomination bills. For several reasons, among them the issue of security,” explained Fabián Xavier Castillo, president of the Federation of Commerce and Industry of the Autonomous City of Buenos Aires (Fecoba).

“The other issue is the issue of deposits. What has been constantly happening at ATMs is that with that volume the money runs out quickly. We are constantly seeing queues at ATMs both to withdraw and deposit and this is also a very difficult issue,” he added.

Businessmen hope that this measure will be taken “with haste” given the rapid loss of purchasing power of money.

Inflation in Argentina could even reach 300%

This week, the Government made official the appointment of Daniel Méndez as president of the Mint, one of the State companies that could be privatized, according to the omnibus bill sent by President Javier Milei to Congress.

Meanwhile, the Mint will be in charge of issuing the new banknotes that could be officially launched by mid-year.

By 2024, some economists warn that inflation could reach 220% and even exceed 300%, and most of that figure will be concentrated in the first half.

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Title:

Content: Sunday, 08 October 2023 11: 38 GMT
Gap between the official and parallel price of the Argentine peso widens to 160%
(MENAFN- Al-Borsa News) The Argentine peso tumbled as citizens rushed to buy dollars ahead of presidential elections later this month, recording the worst performance since selling pressures in August.
The parallel exchange rate for the local currency fell as much as 12.6 percent this week, to a record low of 900 pesos per dollar, bringing the gap between the official and parallel rate to 157 percent.
The gap is the largest since July 2022, and also the largest pace of parallel price declines since the government devalued the official price after the August 13 primaries.
Argentines are scrambling for the parallel market to shift their salaries to the dollar to protect themselves against 120 percent inflation and another sharp devaluation, which economists say is inevitable sometime after the Oct. 22 election.
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What economic issue did Milei want to address?

What economic issue did Milei want to address?

What economic issue did Milei want to address?

What economic issue did Milei want to address?

What economic issue did Milei want to address?

- **Subsidy Elimination**: The president eliminated substantial energy and transportation subsidies that had long distorted market prices but were politically popular.