Argentina put limits on banks to hold dollars for concerns over Argentina devaluation OF Currency. Argentina’s central bank has placed restrictions on dollars saved by local banks. These policies protect the peso from devaluation. It will help build investors’ confidence in the local market. On Monday, there was a drop in the currency’s value of 27 percent.
In currency devaluation, it predicts it will go higher than 40 percent in the new government of Argentina. The new president of Argentina, Javier Milei, said earlier in his speech, “outgoing government put us in these conditions in which we are moving toward high inflation.”
Javier Milei Speech
Javier Milei said we take every step to avoid such danger in our economy. In his speech, he raised some points to control currency devaluation; these adjustments of 5 %of national GDP did not affect the private sector but were light on the industry.
Milei said in his later address in the presidential palace on the balcony,
“This is the dark age of populist and new age of free and liberal Argentina”.
Argentina Govt Economic Measurements
Argentina oil company YPF announced an increase in the price of gas stations by up to 25 %. The source of YPF says the country has a reasonable inflation rate, and the inflation rate could be 180% this year.
Milei’s energy secretary, Eduardo Rodriguez, said that “fuel price was free from government control through YPF, no involvement of government. The government of Argentina has 51% of YPF shares.
Milei decided to select energy chief Horacio Mari as an executive of YPF. The biggest company in the country to provide fuel. This company also develops Vaca Muerta, a big natural gas supplier and unrefined oil. Milei appointed Luis Caputo as minister of economy to improve Argentina’s economy and Santigo Bausili as central bank’s chief.
In the ceremony, Ukrainian President Volodymyr Zelensky expected to see Viktor Orban, Hungary’s Prime Minister, and a U.S. delegation.
Brasilian rightwing leader Jair Bolsonaro attended the ceremony, Uruguay’s leader Luiz Lacalle Pou was also there, and Chill’s president Gabriel Boric was present.
Milei also said, “We think in the short term we will worsen results, but in the end, we will see shine in the sky. We have no choice but to handle this situation this way, but we must make a bold decision.’
He also said that he had no way out of this economic crisis but a painful fix with an inflation rate of 200 percent.