LatinNews Daily - 24 June 2024

*Argentina’s economy minister, Luis Caputo, has dismissed rumours of a planned currency devaluation and emphasised the country’s “very good relationship” with the International Monetary Fund (IMF). In a post on X (formerly Twitter), Caputo responded to media reports that had speculated as to a possible currency devaluation, reiterating that there were no plans for a devaluation and that the current exchange rate policies will remain unchanged. He highlighted that the 80/20 exchange rate policy for exporters, which allows 80% of foreign currency to be exchanged at the official rate and 20% at a more favourable rate, is not an issue for the IMF. Caputo added that the ‘crawling peg’ that steadily weakens the peso by 2% each month in a bid to manage inflation, remained in place. While Caputo said that Argentina has not yet started negotiations for a new agreement with the IMF, to which the country owes US$44bn, he stated that the government maintains a positive relationship with the institution. This comes after the IMF’s executive board approved the eighth review of its Extended Fund Facility (EFF) with Argentina on 13 June, unlocking an immediate disbursement of approximately US$800m.