Updated 01:28 AM EST, Sun, Nov 29, 2020

Argentina Gets A Fresh Start to Brighter Future

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The recent election of Argentine President Mauricio Macri promises a great start for the country after 12 years of economic uncertainty.

The Wall Street Journal said that Macri is off to a good start with him initially lifting currency controls and allowed the peso exchange rate to reach 13.3. It was also noted that this was a sharp drop, but the currency managed to recover fast.

With the increase in the short-term lending rate, the Argentine peso managed not to dive to unstable rates.

According to the American Enterprise Institute, this move will help the country attract more investors and fight inflation.

The same report added that he also lifted taxes on crops to encourage farmers to make the products they hoarded and stored available to all.

AGWeb noted that Finance Minister Alfonso Prat-Gay has revealed that they have come to terms with grain exporters about the bringing in of $400 million daily for the next three weeks.

"Through many other channels we expect to have a total inflow of between $15 billion to $25 billion in the next four weeks," Prat-Gay added.

It was also explained that farmers in the country have been keeping their crops since they started protesting the taxes on the goods and the tedious process to obtain export permits.

AGWeb mentioned that latest data results revealed that Argentine farmers have "$11.4 billion of soy, corn and wheat for sale."

With Macri's announcement of the eliminations of taxes on these grains, it was reported that the tariff on soybeans was cut to around 5 percent.

"He who wants to import will be able to do so, and he who wants to buy dollars will be able to buy them," Prat-Gay said.

CNN Money, on the other hand, mentioned that the new president has issued a decree appointing two new Supreme Court justices who are expected to help him in his agenda for the country.

The Argentine government is also set to negotiate with New York City creditors to whom the country has debts. However, Macri said that any agreement from both parties should be passed through Congress.

All these efforts seem to be geared towards the goal of bringing in more investment to the country.

However, for Capital Economics chief emerging market economist Neil Shearing, a lot still needs to be done for the country though he lauded the President's good start.

"It's still early days, but Mr. Macri has made a good start to his term in office," Shearing told CNN Money.

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