The International Monetary Fund (IMF) published a press release following the approval of its most recent review of Argentina’s agreement that unlocked a US$7.5 billion disbursement, saying that key program targets were missed due to the historic drought and calling to update energy tariffs and contain public wages and pensions. The statement comes on the heels of an announcement made last Wednesday by Energy Secretary Flavia Royón, who said that the government will raise energy tariffs for high-income homes due to an update in operational costs following the devaluation that took place after the PASO elections. Royón had already said last week that the raise was coming. “The recent realignment of the exchange rate, coupled with the tightening of monetary policy, should continue to help support reserve accumulation while limiting the exchange rate pass through to inflation. Going forward, the rate of crawl will be carefully calibrated to help achieve reserve accumulation and disinflation goals.”

Source: Bueno Aires Herald August 25, 2023 14:22 UTC