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Argentina Prepares for New Era under President-Elect Javier Milei

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BNN Correspondents
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Argentina Prepares for New Era under President-Elect Javier Milei

The Argentine president-elect, Javier Milei, is currently steeped in an intense process of planning and forming his government, with frenzied meetings in the lead-up to his presidential inauguration on the coming Sunday. His team is finalizing an economic plan and an omnibus law that will be sent to Congress in extraordinary sessions. While Milei and his team keep the plan's details under wraps, they will be revealed after the inauguration on December 11th.

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Inside The 'Government Bunker'

The meetings are taking place in an improvised 'government bunker' in the Chacofi II building in Retiro, where several future ministers and high-level advisors, including Patricia Bullrich and advisors with direct connections to Milei, have been present. Despite the secrecy, some appointments and continuations in the government, such as Carlos Alberto Soratti in Incucai and Marco Lavagna in INDEC, have been confirmed. The economic plan includes topics like a new capital whitening mechanism, state cuts, labor reform, and the elimination of price controls.

Argentina's Economic Future

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The Argentine investors are bracing for a 44% devaluation of the country's official exchange rate after Javier Milei’s inauguration on December 10. Although the incoming president's team has indicated they will not immediately lift currency controls and have seemingly delayed plans to scrap the peso entirely, the current level of the Argentine currency is largely seen as unsustainable. Markets are signaling a drop of about 27% on Monday, while investment banks like JPMorgan Chase & Co. suggest it will eventually weaken by approximately 44% as Milei prepares to unwind capital controls that have given birth to a mix of exchange rates.

A New Era of Leadership

Javier Milei appointed Santiago Bausili to preside over the Central Bank, as confirmed by the president-elect’s official account on X on Wednesday. Bausili, the former finance secretary during the Macri administration, will take up the role that was initially reserved for Emilio Ocampo, a dollarization advocate whom Milei had announced as the next and “last” president of the Central Bank in September. Before his appointment, Bausili was working at Anker Latinoamérica, a consulting firm founded by future Economy Minister Luis “Toto” Caputo.

As Milei prepares his address for the inauguration, it is expected that he will direct his speech to his followers rather than the Legislative Assembly. As he steps into his role as president, Argentina and the world watch with bated breath, awaiting the unveiling of his economic plan and its potential impact on the country's future.

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