Overview
- Luis Caputo publicly rejected using currency devaluation as the central tool to restore competitiveness and said the exchange rate is one of the least influential variables for long-term competitiveness.
- He set out a policy package that prioritizes tax relief, regulatory rollbacks and logistics investment, citing measures already taken such as a three percentage-point cut in taxes and the removal of about 17,000 regulations.
- Caputo highlighted the high cost of credit for small and medium firms, saying many borrow in pesos at rates near 80% versus a market rate around 25%, and argued that access to financing near 30% would deliver competitiveness gains comparable to a large exchange-rate move.
- He defended continuity of the government's orthodox macroeconomic program, warned that a sharp peso rise could disrupt industry, stoke inflation and endanger fiscal balance, and rejected policies that would undermine property rights or endorse default.
- Caputo said the U.S. election result will not materially change Argentina–U.S. relations and noted that market reactions had already priced expectations after talks with Treasury officials at the G-20.