Economist Hugo Vasques warned during a broadcast on Ronda de Economistas that Argentina’s exchange rate has fallen behind inflation, undermining the effectiveness of recent tax reforms. He argued that the current dollar value does not accurately reflect price evolution, creating uncertainty for businesses planning investments and costs. Vasques emphasized the need for political consensus to ensure economic stability over periods of 10 to 20 years, noting that frequent shifts in policy direction historically hindered production decisions. He compared the exchange rate management of the previous administration, which entered the 2023 elections with a lagging currency, to the current government under Javier Milei, which began with a sharp devaluation but has since returned to a state of exchange rate delay. This lack of continuity, combined with trade openness, pressures companies competing against imported goods, suggesting that reducing taxes alone is insufficient to restore competitiveness.
Bias read (Progressive): The article relies exclusively on a single economist criticizing the current right-wing government's exchange rate policies while highlighting the need for political consensus and stability, omitting counterarguments from pro-government economists.





