Argentina’s new president devalued the peso by 54% in the first batch of “shock therapy” after taking office

Argentina devalued the peso by 54% and announced a series of spending cuts as the first step in President Javier Milei's shock therapy plan to revive the country's struggling economy. The incoming government will adjust the official exchange rate to 800 pesos per dollar, Economy Minister Luis Caputo said in a televised speech after the local market closed on Tuesday. Caputo reiterated several times in the recorded video that "there is no more money," adding that Argentina needed to address its "addiction" to fiscal deficits. Other measures announced include halving the number of ministerial agencies, cutting transfers to provinces and suspending public works. The government will also reduce subsidies for sectors such as transportation and energy. At the same time, Argentina will increase certain social welfare programs, Caputo said. The dramatic first steps came after Milley's inauguration speech on Sunday, when he warned that Argentines would have to endure months of pain while he worked to turn the country away from the legacy left behind by his predecessor. rescued from the economic crisis. Inflation has exceeded 140% annually and prices are expected to rise between 20% and 40% in the coming months, the president said.