“Is Bessent doing an orderly devaluation? Ignacio Miri in Clarín he gives a very original version of what is happening with the Argentine economy. According to his theory, the Secretary of the Treasury, with his daily interventions, is carrying out an orderly devaluation of the peso. This happens beyond the fact that the members of the economic team are in charge of denying a devaluation every day,” he posted. Marcelo Longobardi on their social networks.
In his Instagram streaming column, the journalist explained: “In the same days that Argentine officials in Washington denied a devaluation again and again, Bessent with surgical interventions that offered dollars on the screens for a few pesos, it set the closing price. Which was always a little higher than the previous day. There is no memory of such a consistent devaluation that has been denied so many times by government officials.”
“The roles seem clear: Caputo and his team deny the devaluation and Bessent executes it,” Longobardi concluded and closed: “Thus, the Argentine government is exempt from agreeing with local economists and from paying a political cost that any devaluation entails and Bessent takes the Argentine ship to where the IMF and the most powerful financiers in the world recommend.”
In the local market, the wholesale dollar rose to 1,491 pesos at the ceiling of the band as soon as the market opened this Wednesday. After the brutal intervention of the Secretary of the Treasury of Donald Trump, The value fell a few pesos and closed at 1,489 pesos. The banks that intervened, according to various sources, were the JP Morgan and Citi Bank with a figure that ranges between USD 400 million and USD 500 million.
In conclusion, the dollar market moved more than USD 700 million. On the same day, the blue dollar operated at its record and climbed to 1,550 pesos and the MEP closed at 1,592 pesos and the Cash With Settlement rose to 1,614 pesos. There are still two days left on the market until the legislative elections on Sunday. Although it is taken for granted that the pressure on the dollar will continue to intensify, the economic team sent Miguel Nuñez and Juan Pazo to ensure that from Monday the dollar will drop to 1,250 pesos.
Rumors of Libertarian cabinet changes include a likely resignation of Luis Caputo to the economic portfolio. The government mentions that it could be replaced by Federico Sturzeneggerwhich is already working on a plan that includes the free floating of the dollar requested by the IMF and the North American Treasury.
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