The Argentine government announces measures to contain the effects of currency devaluation

Argentina’s economy minister and presidential candidate, Sergio Massa, announced on Sunday a series of measures to mitigate the fall in purchasing power caused by the 22% rise in the exchange rate, which he confirmed on 14th August.

The actions “to take care of Argentine families”, which according to Massa are expected in a video on his social networks and counted throughout the day, are aimed at small and medium-sized businesses, pensioners, workers in a dependent relationship, under the monotribute regime and the Social economy and groups that depend on government funding programs.

“How are we supposed to compensate for the damage caused by this situation,” Massa said, as a result of Argentina’s currency devaluation “forced” by Argentina’s deal with the International Monetary Fund (IMF) and the historic drought that reduced damage to agricultural exports this year engine of the country’s economy.

For retirees and retirees, Massa announced a “boost” of 37,000 pesos ($101.2) a month in September, October and November, raising the minimum pension to 124,000 pesos ($339.2).

Retirees also recalled credits of up to 400,000 pesos in 24, 36 or 48 installments at a quarter of the rate charged by banks today, as well as a VAT refund for purchases in stores using debit cards.

Argentina confirmed a 22% exchange rate rise the day after the August 13 primary elections after defending an official exchange rate for half of those listed on parallel exchange rates due to the severe restrictions the government imposed on access to the official foreign exchange market.

The devaluation of the currency quickly affected prices (which were already 113.4% annually in July and monthly price increases are expected to exceed double digits in August) and parallel exchange rates, leaving the exchange rate gap at around 100%.

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Massa is the pro-government (Peronist) candidate for the October 22 presidential election.

With information from Efe

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