After the release of the inflation index in April, of 8.4%, the Government prepared a package of 9 measures, some more could still be added, which seek to alleviate the unbridled escalation of prices and avoid a new dollar race. Raising rates, greater intervention in the exchange market, opening imports in some areas, and the creation of a super control body to detect "abusive" remarks, are some of the decisions that Sergio Massa puts in place.
The main measure is an increase of 6 points in the interest rate of fixed terms to bring it to 97% per year, still below the year-on-year inflation of 108.8%. The Central Bank had already increased it 10 points, from 81 to 91%, after the exchange rate run at the end of April. The nominal monthly rate will thus increase to 8% and the annual effective rate to 152%.
Below, one by one, the 9 measures adopted so far:
Rate hike
Central Bank of Argentina. Photo Juano Tesone
The Central Bank takes the rate to 97% per year, which implies 8.08% per month and 154% effective per year. That way they seek that the pesos do not go to the dollar.
Now 12
Now/12
"To stimulate consumption" they reduce the rate of Now 9 by 12 percentage points. They represent 5.8 million monthly operations for $ 250,000 million.
Other organism
AFIP operation infringed alcoholic beverages. Courtesy.
It is a super organism to detect "abusive" price increases. It will centralize online information from Customs, AFIP, Commerce and the BCRA, among others.
Negotiation
IMF
Accelerate discussions with the IMF on advance disbursements; with China, for swaps, and with the BRICS countries, to facilitate imports from Brazil.
Dollar adjustment
Gradual devaluation of the peso. REUTERS/Dado Ruvic/Illustration/Archive
The Central Bank will manage the crawling peg (gradual devaluation of the peso against the dollar) of the official exchange rate. Last night the rhythm was not defined.
Central Market
Opening of imports. REUTERS/Agustin Marcarian
The Central Market will add to its activity the role of direct importer of food. It will do so with zero tariff. There will be greater controls on operations.
Payment plan
The AFIP will launch a new payment plan of up to 84 installments. Photo: Marcelo Carroll - FTP CLARIN
The AFIP will launch a new payment plan of up to 84 installments for the current debt of companies and individuals with the agency and there will be fiscal relief measures.
Antidumping
Anti-dumping rules relaxed. EFE/ Demian Alday Estevez
They relax anti-dumping rules to reduce the effective price of imports of certain disseminated inputs and bring goods in from abroad.
Trusts
Trusts. Photo German Garcia Adrasti - FTP CLARIN
They will be public/private for the purchase of food products. Each local trade may be a cuotapartista by contributing funds for centralized purchase.
SN
See also