Argentina’s Economy Minister Martin Guzmán has resigned as the country’s economic crisis deepens.
Mr. Guzman has been in office since late 2019, leading negotiations with the International Monetary Fund (IMF) on Argentina’s debt restructuring.
He called for “a political agreement within the governing coalition” to choose his successor.
Argentina is struggling with 60% inflation and a weak currency, as well as rising global food and energy prices.
Mr Guzmán resigned after a week of economic turmoil as the Argentine peso slipped against the dollar.
His departure leaves a big question mark over Argentina’s future economic policy.
In a letter to President Alberto Fernandez, Mr Guzmán highlighted internal divisions within the government.
But it’s no secret that President Fernandez is at odds with his deputy, Cristina Fernández de Kirchner, over how to resolve the country’s economic woes.
Indeed, Mr Guzmán announced his resignation, while Ms Fernández delivered the latest in a series of high-profile speeches criticizing her own government’s economic policies.
Ms Fernandez, who was president from 2007 to 2015, has criticized what she sees as the government’s failure to ease the financial burden on ordinary Argentines.
She and her supporters saw Mr Guzmán’s efforts to reduce the budget deficit and tighten monetary policy as excessive.
If Ms Fernandez has her way, the next Treasury Secretary will ease fiscal discipline and increase the level of government intervention in the economy.
But that could prove to be a bitter pill for the IMF, as some financial analysts are already criticizing the fund for not being stringent enough in its recent $44 billion debt deal with Argentina.
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