The interest of agricultural exporters in liquidating currencies taking advantage of the drop in withholdings poses challenges due to the weakness of commodity prices and the need for pre-financing. The official expectation remains in anticipation of accelerating the market, despite financial pressure and the IMF's caution regarding disbursements.
On another note, after the possibility of an agreement with the IMF in Washington, the economic team ruled out an accelerated devaluation. The reduction of withholdings and tax burdens to boost sectors such as regional economies and the automotive industry reinforces a model based on gaining competitiveness through means other than devaluation, according to Milei and Caputo.
The adjustment of the crawling peg to establish a monthly depreciation of 1%, against higher inflation, will favor carry trade and the supply of financial dollars. However, the government is betting on combating inflation and showing results before considering more drastic measures. Uncertainty persists regarding the exchange rate policy and the Central Bank's ability to increase its reserves, which conditions the short-term economic agenda.
