After another week of uncertainty in Argentina, Sergio Massa became the country’s third Economy Minister in as many weeks yesterday, replacing Silvina Batakis and also taking charge of the Agriculture and Production ministries.
Mr. Massa wants to put an end to a decade of conflicts between the Economy Ministry and other economic-related government departments, and is still in discussions to take control of Argentina’s energy secretariat and Central Bank.
The transition was unsurprisingly chaotic, coming off the back of a tortuous few weeks in the wake of Martín Guzmán’s surprise resignation.
The most notable policy change so far has been a massive interest rate hike, which contributed to easing pressure on the Argentinian Peso. The currency is now trading at ARS 280 : USD 1 on the country’s parallel free markets, after touching ARS 350 : USD 1 last week.
Mr. Massa said he will not announce his team or economic program until next week, but investors are hoping for a less conflictive relationship with Vice President Cristina Kirchner and a closing of the country’s fiscal, trade, and monetary gaps.
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