IMF official Rodrigo Valdés and Javier Milei clash on financial decisions, setting off a tension that could impact Argentina’s economic stability

A disagreement between Javier Milei and Rodrigo Valdés, a senior official of the International Monetary Fund (IMF), has come to light following their meeting at the G7 summit in Italy eleven days ago. During a radio interview, Milei criticized Valdés for allowing an increase in the Central Bank’s debt during the previous administration, leading to tension between them.

The conflict has been brewing for some time, with Valdés highlighting progress in the country while also warning about the need for fiscal adjustment that does not disproportionately affect the working class. The tension intensified when the dollar began to fluctuate, prompting Milei to criticize the previous government and IMF for certain financial decisions.

Despite praise for fiscal adjustment in a recent IMF report, recommendations were made to address issues such as fragile reserves and exchange gaps. The government is facing challenges in securing funding to lift stocks left by the previous government and contemplating a new monetary regime to stabilize currency fluctuations.

As tensions rise between Argentina and IMF officials, there is an urgent need for a new agreement to refinance the country’s debt. The government is also considering moving towards a new monetary regime in preparation for upcoming elections in 2025. The situation is complex, with both parties facing obstacles in finding common ground to move forward.