Luis Caputo, Javier Milei's Minister of Finance, announced on Tuesday night the first measures of the adjustment plan that the president promised both at his inauguration and throughout his campaign, in addition to a devaluation of the currency that places the exchange rate is 800 pesos per dollar. The previous minister and Peronist candidate, Sergio Massa, had left the exchange rate at 400 pesos per dollar.
The measures certify a notable reduction in public spending and the State reform anticipated by Milei, although the first announcement was the non-renewal of the State's one-year labor contracts. To which will be added the suspension of institutional advertising for at least one year
The also promised reduction of the administration that Milei presented in a histrionic video will see the Government go from 18 to new ministries and the Secretariats of State, from 106 to 54. Regarding the contribution of the State to the provinces, Caputo pointed out that will be reduced to a minimum.
To reduce inflation that reached 300% annually and "avoid a catastrophe," the minister announced a shock plan that will begin with this monetary devaluation. To protect the most disadvantaged, Caputo pointed out that the State will double the aid per child and the provision of food cards.
These measures have obtained the support of the International Monetary Fund (IMF) already early Wednesday. "These strong initial actions aim to significantly improve public finances in a way that protects the most vulnerable in society and to strengthen the exchange rate regime," IMF Communications Director Julie Kozack said in a statement.
