BUENOS AIRES (Reuters) – Argentina's President Javier Millay said on Thursday he plans to propose legislation that would penalize the central bank for lending to the national treasury.
In an interview with local news broadcaster TN, Millais said he would try to prevent the monetary authority from printing more money to curb inflation, which currently exceeds 200% a year.
The liberal president, who took office in December promising to take control of the country's economy as it faces a spiral of poverty, said the International Monetary Fund (IMF) supports his policies.
“The fund is very happy with our work,” Millais said after meeting with Gita Gopinath, the fund's first deputy managing director, earlier in the day.
Gopinath said in a statement that the Millais government's “early actions are beginning to bear fruit, but the road ahead remains difficult.”
The IMF recognized Argentina's efforts to establish a strong financial foundation. In December, Argentina devalued its local currency, the peso, by more than 50% against the US dollar.
“Consistent and well-communicated monetary and (foreign exchange) policies are needed to sustainably reduce inflation, rebuild foreign exchange reserves, and continue to strengthen credibility,” Gopinath said. said.
(Reporting by Nicolas Misculin; Editing by Anthony Esposito and Brendan O'Boyle)
