Just two days after assuming office, President Javier Milei of Argentina has taken decisive steps to rejuvenate the country’s faltering economy. Economy Minister Luis Caputo unveiled a comprehensive ten-point economic reform plan, consisting of measures such as devaluing the Argentine Peso to 800 per dollar, reducing the number of ministries, curbing funding to provincial allocations, suspending public works, cutting subsidies in the energy and transportation sectors, and introducing social welfare initiatives.
To further bolster the reform measures, the Economy Ministry suggested a devaluation of the Peso by 2% each month. The proposed reductions in government spending were estimated to amount to an impressive 2.9% of the nation’s GDP. Simultaneously, certain monetary policies were also announced by the Central Bank earlier this week.
Though the plans have been met with approval in regards to their potential impact, investors still eagerly await more data-driven initiatives implemented through congressional vires that could consequently affect ordinary Argentine citizens.
President Milei, a renowned ‘pro-Bitcoin’ leader, has already sent shockwaves addressing his hyperinflation crisis and further appreciating reforms presented in his inaugural address. Rallying the country’s today; it remains to be seen if the steps are in fact enough to steer the nation out of its inexplicable crisis.
