The IMF approves the management of Argentina’s international reserves

Through a statement added to the report on Friday, the agency detailed the disbursement of 5.4 billion dollars for the coffers of the South American country, although it did not provide data on the new quarterly reserve objectives.

The IMF recognized that the Argentine economic situation became more difficult since the beginning of 2023 due to the severe drought that affected agriculture, vital for the macro march.

“In the context of an increasingly severe drought, rising inflation, and weak reserve coverage, a stronger policy package is necessary to safeguard stability, address setbacks, and secure program objectives. Along with this decision, a modification of the reserve target was also approved,” the IMF said.

In an extensive statement, he maintained that the Government must avoid interventions in the alternative exchange market using reserves or short-term external debt instruments, at a time when inflation averages 100% and the exchange rate gap is around 90% between the wholesale peso and the coin in the influential fringe segment.