Traders bet on weaker Argentine peso as Milei’s IMF deal looms

Argentina has defaulted on IMF nine times.
So, your sentence might be worded slightly differently-
"IMF loans come with disastrous conditions if you actually pay any attention to anything on the loan you signed"
since Argentina has not, and does not, and, somehow, again and again, gets another loan to ignore the conditions of, and then not pay back, your warning is not taken seriously by Argentine governments.
Any similarities between what they require, and what happens here, is, usually, mere coincidence.
Dim Witty said:
IMF loans come with disastrous conditions.
They require countries to implement rigid fiscal austerity measures, raise taxes, devalue currency, and privatize (more dismantling of “The State”). In short, a Neoliberal, Libertarian wet dream. A textbook modelling of a fascist oligarchy.
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Vossos said:
1.6 billion clearly well spent (/s), I’m getting an all time high of 1550 to GBP on visa exchange calculator
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So according to your calculations, it would take 12 weeks to burn through the 20 billion IMF loan? Am I missing anything? Would that get us to the election?
 
FrankPintor said:
So according to your calculations, it would take 12 weeks to burn through the 20 billion IMF loan? Am I missing anything? Would that get us to the election?
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Likewise, I think that there around 20 billion USD in foreign currency reserves. At a rate of 1.6 billion per 10 days solely spent on (failing) to maintain the USD rate. All foreign currency reserves would be burned out in around 4 months.

What’s more extraordinary for me (and I’m no economist) is that considering that far as I can see Argentina’s GDP in 2024 was between $600-650 billion USD. Let’s call that 17.5 billion per 10 days. 10% of GDP burned to try and still fail to maintain the exchange rate is incredible.

I don’t want to open up a can of worms but I dont see there ever being confidence in the Argentine peso and the politics and macroeconomic conditions will always deter investors. Surely proper dollarisation is the only path to stability
 
Vossos said:
Likewise, I think that there around 20 billion USD in foreign currency reserves. At a rate of 1.6 billion per 10 days solely spent on (failing) to maintain the USD rate. All foreign currency reserves would be burned out in around 4 months.

What’s more extraordinary for me (and I’m no economist) is that considering that far as I can see Argentina’s GDP in 2024 was between $600-650 billion USD. Let’s call that 17.5 billion per 10 days. 10% of GDP burned to try and still fail to maintain the exchange rate is incredible.

I don’t want to open up a can of worms but I dont see there ever being confidence in the Argentine peso and the politics and macroeconomic conditions will always deter investors. Surely proper dollarisation is the only path to
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Caputo says these weeks have had more imports than exports. They needed the dollars to bring in the goods. Exporters are waiting to see what happens with the IMF deal.
 
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