Eleven days after meeting with the head of the International Monetary Fund at the G7 summit in Italy, Javier Milei expressed his frustration by pointing the board at a senior official, believed to be Rodrigo Valdés, during a radio interview. Milei criticized Valdés for allowing an increase in the Central Bank’s debt during the previous administration. This conflict came to light during a radio interview where Milei mentioned obstacles he faced in lifting stocks left by the previous government, specifically mentioning a person with ties to the São Paulo Forum.
The tension between Milei and Valdés had been building for some time, with Valdés highlighting progress in the country but also warning about the need for fiscal adjustment that does not disproportionately affect the working class. The conflict intensified as the dollar began to fluctuate, prompting Milei to criticize the previous government and the IMF for certain financial decisions.
Despite praise for the fiscal adjustment in a recent IMF report, recommendations were made to address issues such as fragile reserves and the widening exchange gap. The government is facing challenges in securing funding to lift the stocks and contemplating a new monetary regime to stabilize the currency.
As tensions rise between the government and the IMF, the need for a new agreement to refinance the country’s debt is becoming more urgent. The government is also considering moving towards a new monetary regime in preparation for the 2025 elections. The situation is complex, with both parties facing obstacles in finding common ground to move forward.