Argentina's Ministry of Economy announced that it will purchase just over $1.5 billion from the central bank to cover interest payments on the Globales and Bonares bonds maturing in January 2025. The funds will come from a financial surplus of 2.3 trillion Argentine pesos (approximately $2.5 billion) accumulated in the first half of the year, as stated by the ministry. Of this amount, $1.528 billion will be deposited into an account at the Bank of New York, specifically designated for the bond interest payments. This announcement follows President Javier Milei's government unveiling a plan to halt the expansion of the monetary base to tackle inflation, which is approaching 300 per cent annually. Milei, a free-market economist, has implemented a rigorous austerity programme since taking office, focusing on reducing state spending and rebuilding the country's depleted foreign exchange reserves. In the initial months of Milei's administration, the central bank actively purchased dollars to meet creditor obligations. Accumulating reserves is essential for restoring economic and financial stability after years of crisis and is critical for the government's efforts to lift stringent currency controls that have hindered business and trade. Attribution: Reuters
