Sergio Massa seeks dollars in G20: exchange with India and financing with China and the US to boost reserves

He Minister of Economy Sergio Massa arrived at the G20 and started activity with a number of key bilaterals for the financing of Argentina as China and the United Statestwo powers in a geopolitical dispute, exacerbated by the Russian invasion of Ukraine. The government is also negotiating an exchange with Indiahost country, with which it has “very good harmony” in the requirements for measures for emerging countries.

The government is trying to ensure infrastructure financing and that the multilateral tap opens. The IMF has left you with good news in recent days, allowing the IDB and CAF to finance themselves with special drawing rights (SDRs) that can extend credits to Argentina and the region.

He Meanwhile, the World Bank is in full transition. It was recently presented by Janet Yellen, head of the US Treasury Department multilateral bank reform plan -where the United States has historically led- i the departure of David Malpasswho arrived hand in hand with Donald Trump.

In this context, in the indian city of bengaluruwhere the G20 summit of finance ministers and central bank governors is taking place, Massa met with Under Secretary for International Affairs of the United States Department of the Treasury, Jay Shambaugh.

impact of war and drought

Massa put on the table “progress in the economic program and in the revision of the agreement with the International Monetary Fund (IMF)”, along with the fulfillment of the fiscal and reserve goals, but he also brought up the issue with which the domestic delegation is pressing in parallel in Washington: the impact of the war and the drought in Argentina, which threaten the goal of accumulating dollars this year.

Despite a bad start to the trade balance in January, with a deficit of USD 500 million, the Government believes that the projection of the commercial surplus of the budget for 2023 will be fulfilled.. Savings in dollars due to less procurement of energy sources add pressure on currency operations, both in imports and in tourism.

Massa and Shambaugh discussed the need for an increase financing for middle-income countries and the impact of the massive drought affecting Argentina and other countries on the global food security agenda and economies.

Argentina also confirmed the commitment return to international debt markets. The goal, according to the agreement with the IMF, is that from 2025 it will be possible to obtain voluntary financing on the debt market to cover obligations already without payments from the Fund.

exchanges with China and India

Massa closed the day with a meeting with Chinese Vice Minister of Finance Wang Dongwei to advance in bilateral economic and financial cooperation related to Chinese financing of infrastructure projects for development in Argentina and Alternatives to strengthen Argentina’s international reserves.

Commissioning to replace already announced, it was back on the table, this time for a “progress review,” according to Economy. In the same way projects with financing in infrastructure, energy and transport which will be held this year.

Also with India, “reserve strengthening mechanisms and various currency swaps” were the subject of the meeting with Indian Finance Minister Nirmala Sitharaman. Official sources confirmed that an exchange was also being negotiated with that country and assured that the plans were “very well coordinated”.

The two countries agree that it is for climate changesbut they warn that you should consider “Not only rehabilitation and mitigation but also, and fundamentally, “adjustment” as a pivot in various middle-income countries.”

The closing of the activity was welcome dinner and to the cultural act of this first meeting of the G20 summit of finance ministers and central bank governors. The G20 will analyze the global state of debt, growth and financing amid the projections they maintain the fight against inflation as one of the central points.