Argentina’s new economy minister took office on Monday (4) after a weekend of political turmoil in the country. Silvina Batakis, who was minister of the same portfolio in the Province of Buenos Aires between 2011 and 2015, replaces Martín Guzmán, responsible for renegotiating the country’s debt with the IMF (International Monetary Fund). The ceremony was quick, with the presence of all the ministers and some governors. The great absentee was Cristina Kirchner, who is in friction with the representative Alberto Fernández, in charge of taking the oath of the new minister.
As the inauguration ceremony took place, anti-government protesters protested outside the Casa Rosada. The vice president’s residence, in the Recoleta neighborhood, was also surrounded by people carrying posters alluding to the crisis that the country is experiencing.
The main indication of the impact of the change of minister this Monday was the increase in the so-called “blue” dollar, the clandestine one, which went from 236 pesos (R$ 9.93) to almost 267 (R$ 11.24), while the official one remained at 125 pesos (R$ 5.26). The difference between the two dollars greatly impacts the popular economy and inflation, as merchants and businessmen are guided by the “blue” to promote increases, with the exception of foods that are frozen.
There is a lot of expectation regarding the market this Tuesday (5). As it was a holiday in the US on Monday, the impact that the change in ministers could have on the country’s stocks and bonds is not yet known.
Born in Tierra del Fuego, Batakis studied at the Universidad Nacional de La Plata and majored in public finance. She then studied environmental economics at the University of York in England, with specializations in France and England.
Kirchner defends her for not considering that one can fight inflation with cuts in public spending. She is also in favor of energy subsidies, an area of greatest friction between Guzmán and Kirchner.
The now former minister had as his main objective, as determined by Fernández, to reach an agreement with the IMF (International Monetary Fund), whose objective was to restructure the more than US$ 44 billion that the country owes to the entity. Guzmán carried out the request, and his stay was reinforced by Fernández because of the good traffic that the former minister had in the international sphere.
The main difference that Cristina had with the former minister was that he wanted to apply adjustments in tariffs and greater rigor in public spending, something that the deputy never accepted. Cristina is an advocate of more state intervention in the economy and increased social spending, especially in the most serious months of the pandemic.
