Largarde met Dujovne and renewed his support for the Argentine program

After sacking the minister, Lagarde wrote on his Twitter account: "It was a pleasure to see that Dujovne had a good discussion on the recent events of the Argentine economy" set the tone of the conversation.

The meeting was created following a visit by the US Treasury Chief, with the main objective of reaching international investors with Argentina's economic projections and attracting capital to the country.

The meeting between Lagarde and Dujovne was held as a prelude to the meeting of the IMF's Executive Board (it will take place at the end of the month) during which will be badyzed the report on the situation in Argentina which elaborated the mission chaired by Italy. Roberto Cardarelli. This report – which will be rejected in a positive manner – will allow the disbursement of a new tranche of funding of approximately $ 10,000 million under the Stand-By Arrangement signed between Argentina and the entity .

The Spokesman of the Monetary Fund, through a spokesperson, said that Lagarde and Dujvone "They talked about recent economic developments and prospects for Argentina". It was also noted that Lagarde "He congratulated the authorities for their efforts to promote their economic stabilization plan and provide social protection to the poor and vulnerable."

According to the IMF source, "the strong and ongoing implementation of the authorities' reform agenda will be crucial in laying the foundation for a stable economy and sustainable growth." That is to say, in diplomatic language, the Fund continues to show signs of support for the implementation of the Government of Argentina.

Versions

Although there are many versions in which the Minister will seek to obtain the approval of the IMF at this meeting so that the Central Bank of the Argentine Republic has more room for maneuver great for intervening in the foreign exchange market, it's just "Protocol" and "Is explained in the context of Dujvone's trip to the United States".

In previous declarations, the Fund's authorities pointed out that the flotation band adopted by the BCRA included automatic compensation mechanisms. In this way, if the peso depreciates a lot, local authorities have the opportunity to sell dollars and reduce the amount of pesos in the economy. The same thing happens in the opposite direction, if the peso strengthens, the central bank is allowed to buy currencies and issue pesos to adjust to the exchange rate hike.

As he said in public statements at the time Cardarelli "There are margins, safeguard clauses (that they are depreciated or appreciated) and to evaluate an adequate monetary policy regime". Although always remember that these decisions correspond to the Central Bank.

Information from Washington also indicates that IMF technicians would now have a more optimistic view of economic activity, since, according to transcended reports, the agency would reduce the drop in gross domestic product.

But all is not good news, the Fund would also modify its inflation forecast for the current year. In its latest report, the agency estimated an annual increase price index of 25%, but should now be increased to 30%. Although, seeing the data that the main economists slip, "perhaps with 30%, they fall short".