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Government Entering Second Phase Of Economic Plan, June Tax Revenue Due

ARGENTINA
  • Economy Minister Luis Caputo and BCRA President Bausili said on Friday that the government is entering the second phase of its economic plan. Bausili said that this will involve replacing the BCRA’s liabilities with new Treasury debt and that he will meet with the country’s banks today. The Treasury note will be the new monetary policy instrument.
  • Meanwhile, Caputo said that the 2% crawling peg would be kept and that no abrupt FX devaluation was coming. He also said that the PAIS tax will start to be phased out between August and September. Caputo added that the third phase of the economic plan will include exiting capital controls, which JP Morgan think could happen gradually in the fourth quarter, amid an uptrend in net reserves at that time.
  • On the data front, June government tax revenue figures are due today. Later this week, the BCRA will publish its latest analyst survey on Thursday, while May IP and construction activity data are due on Friday.
    • Govt tax revenue, June; prior ARS13.379t

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