Caputo Reaffirms Unchanged Economic Course Amidst Argentine Market Volatility

Buenos Aires – Argentina's Minister of Economy, Luis "Toto" Caputo, issued a definitive statement on social media, asserting that the nation's economic direction, encompassing fiscal, monetary, and exchange rate policies, will remain steadfast. "Nada va a cambiar en lo económico. Ni en lo fiscal, ni en lo monetario, ni en lo cambiario. Un abrazo a todos," Caputo stated in a tweet, emphasizing continuity amidst recent market fluctuations.

Caputo's declaration comes as the government of President Javier Milei continues its rigorous economic "shock therapy" aimed at stabilizing Argentina's beleaguered finances. Since taking office in December 2023, the administration has prioritized achieving a fiscal surplus and curbing rampant inflation, which had soared to over 100%. These measures include deep cuts to public spending, a halt on public works, and efforts to end monetary expansion.

The Milei government has made significant strides in fiscal consolidation, achieving monthly fiscal surpluses and reducing the money supply. Inflation has shown signs of moderation, with monthly rates declining significantly from their peak in December 2023. This fiscal discipline has been a cornerstone of the administration's strategy, earning praise from the International Monetary Fund (IMF), which has supported Argentina with substantial disbursements.

Despite these efforts, challenges persist, particularly concerning the exchange rate and capital controls. While some capital controls have been eased, the peso has faced periods of overvaluation, and the central bank has intervened in the foreign exchange market. The recent defeat of Milei's party in local elections in Buenos Aires province on September 8, 2025, triggered a market tumble, with the peso dropping and stocks falling, raising concerns about the government's ability to implement its reform agenda.

Analysts note that the government faces a delicate balance, particularly regarding the peso's value ahead of upcoming midterm elections. However, Minister Caputo's recent statement underscores the administration's commitment to its current economic framework, signaling that the core pillars of fiscal, monetary, and exchange rate policy will not be altered despite external pressures or political setbacks.