The central bank of Brazil injects US $ 250 million to contain US Dollar High



Dafter the record devaluation of last Thursday (30), which caused the peso to lose 12% of its value in less than a week and led the central bank to raise interest rates to 60% (the largest in the world), the Argentine government has taken steps to calm the tension in markets and on the streets.

The central bank has injected $ 250 million to counter the escalation of the US currency, which closed after Friday's 31 peso & # 39; s Thursday morning (30) Friday on Friday 31 (31). ).

Minister of Finance Nicolas Dujovne will be sent to Washington next Monday evening for a meeting with the IMF on Tuesday morning. The idea is to renegotiate the fund's requirements to release the quota of the $ 50 billion credit limit agreed in June. Among them, the reduction of inflation and the budget deficit by 1.3% in 2019.

Macri wants Dujovne to convince the Fund to free up the money according to the country's need to calm down investors, according to the chief of staff, Marcos Peña, in a meeting with businessmen.

The president had earlier this week announced a request for an advance of $ 3 billion, plus the $ 15 billion already released.

The IMF confirmed the request and the meeting and reinforced its support for the government. "Argentina has the support of the Fund and we are convinced that the strong dedication and determination of the Argentinean authorities will help the country overcome this difficult moment," spokeswoman Gerry Rice said.

Before traveling, Dujovne will publish a package of measures, including an increase in export taxes, further cuts in government expenditure and postponement of the implementation of the tax reform.

The team of ministers responsible for the economy was gathered all morning and part of the afternoon at the residence of Olivos, next to Macri and vice, Gabriela Michetti. There were no press releases, only the information that the meeting dealt with the package of measures announced earlier in the week and possible changes to ministers.

There is pressure from entrepreneurs and bankers to exchange some names, including Dujovne, Peña, favorite employee of Macri, and some of his two deputy leaders, Mario Quintana and Gustavo Lopetegui. Macri said that he would not give up Peña and that he could fulfill another function, such as that of chancellor, while the chief of staff would get a more economical profile.

According to analyst Sergio Berensztein, the signals from the government would be "completely wrong, instead of relying solely on the IMF, concentrating on his political work to negotiate with the governors of the provinces on the reduction of government spending and the moderate Support peronist opposition to the implementation of reforms. "

On Thursday evening (30) Plaza de Mayo was taken over by a protest, initially set to demand wage increases according to inflation by university professors, but that proved to be a demonstration against President Macri and IMF. The posters appeared again for his resignation with the image of a helicopter – a reference to the way ex-president Francisco de la Rua left the government and the Casa Rosada in the 2001 crisis.

During this Friday (31) there was a protest for the Ministry of Production and panelaços were heard in different neighborhoods.

The main exchange offices in the center of Buenos Aires started with several television cameras and journalists ready to register the queues and placards with the value of the US currency.

"I'll compare it, if I download a little bit today, I'm going to buy it, because this government is doing everything wrong and I've seen it before, it's going to explode," said Cristobal Lanzetti, 64, who was in the morning between a exchange office ran. the "placards".

In recent weeks, several restaurants and shops at the entrance have shown the warning to accept credit card payments only if they are international. "In pesos I do not really accept, with this volatility I run the risk of receiving half when the value goes down," says Pierre Ortuzar, owner of a cafe and a kiosk near Palermo. With information from Folhapress.

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