In less than a month as the Argentinian President, Mauricio Macri has taken a radical turn on the economic policy of the 12 years of Kirchner, and especially the last stage of the presidency of Cristina Fernández Kirchner. After years of a growing state intervention in the economy, most changes Macri anticipate are in the direction of a more market-friendly policies.
End of restrictions on forex. The most striking measure Macri has done in Argentina after assuming the presidency; was to eliminate the restriction to exchange pesos to dollars. Since 2011, both, individuals and companies, could only buy foreign currency legally as a dropper because the government of Cristina Fernandez Kirchner imposed capital controls as an alternative to a devaluation of the national currency. With the intention of encouraging economic activity, investment and private employment, Macri eliminated these limitations a week after being sworn in on 10 December. The decision has led to a depreciation of the peso, which has returned to its level of 2013.
Rates and export quotas. Agriculture and industry have benefited from the elimination of most of the restrictions on trade imposed by the government. Furthermore, in a bid to increase supply and lower the price of food in the domestic market, the previous government imposed maximum quotas of foreign trade of wheat and corn. But the measure discouraged farmers to grow those cereals and encouraged them to grow soybeans. Macri repealed these quotas on Tuesday.
Protectionist barriers. Limits on imports affecting local industries grew in 2012. The World Trade Organization (WTO) ruled in 2014 that should eliminate such widespread obstacles on 1 January 2016. Macri is ahead one week. Of the 19,000 products that until now had protection from imports, the new president has vowed to implement accepted by the WTO for 1,400 products industries such as textiles, electronics, metallurgy, footwear, toys and auto parts barriers.
Price agreements. The new government plans to reduce the number of agreements with supermarkets and manufacturers of consumer products to avoid the escalation of inflation. Of the 512 items covered so far, it will pass about 370.
Rising interest rates. After years of interest rates below inflation, the central bank, now controlled by Federico Sturzenegger, the first rose to 38% (nine points) to contain the devaluation and then the lowered to 33%.
Review statistics. The new director of the National Institute of Statistics and Census (INDEC), Jorge Todesca, has temporarily suspended the distribution of data, because it says that the company “has been destroyed” to the continuous manipulation that occurred since 2007.
And these are only the most important things the new government is doing. There is a huge list of things prepared for the coming months. The end of the subsidised economy, public energy sector, corruption, etc. Argentinians have a lot of work to do if they want to be seen as a reliable country in the future. All countries have a past life, and history. It’s on our hands, the people living today to change things.