The Accusation

The public disagreement erupted after an interview with Lacunza on LN+, where he discussed the government’s decision to exit the exchange rate controls.Milei and caputo took to X (formerly Twitter) to refute lacunza’s claims, asserting that his statements misrepresented the negotiations with the IMF and the planned implementation of exchange rate bands.

President Milei didn’t hold back,with Caputo even more direct. “You are a liar,” Caputo wrote on his X account. “As you lied to the president of an institution telling him that you had confidential info. When that leaked you called Mecon to say that it was false. I tell you, before you had called the person who received your cheap gossip,” he said.

Lacunza’s Analysis

In his interview, Lacunza acknowledged the decision to lift restrictions as a “good decision” but argued it was overdue.He suggested the government missed earlier opportunities, stating, “He could have done it last year. but when he had the prospect to do so … the government was in a corner of comfort that the stock gave him. Suppose it is indeed a ring. It was on the corner of stability, without volatility, the dollar outside the TV screens and with low inflation. That strategy gave him 15 months and more than 30 days ago he began to falter.”

Lacunza also emphasized the importance of monitoring the dollar’s stability in the immediate future.”No matter what happens tomorrow. The most critically important thing is the price [del dólar] within 15 days. Now you have to look for a non -volatility zone,” he stated, stressing the need for stability after the initial market reaction.

Government’s Defense

Caputo countered Lacunza’s timeline, asserting that an agreement on the exchange rate band regime had been in place since August of the previous year. “The departure of the stocks was going to be when we managed to agree on the amounts,” Caputo wrote, adding, “I am sorry to have to deny someone to whom I have appreciation, but it is indeed what corresponds. Let’s leave the lies for the Kirchnerists.”

Context and Implications

This public dispute comes at a critical time as the Milei administration seeks to solidify its economic strategy, particularly with the opening of markets following the announcement to lift exchange rate controls. The market’s initial response will be closely watched as a key indicator of the policy’s success.

The Argentine economy faces critically important challenges, including high inflation and a history of currency instability. The lifting of exchange rate controls is a major step towards liberalization, but it also carries risks, particularly if it leads to increased volatility or capital flight.

For U.S. investors and businesses with interests in Argentina, these developments will be closely monitored. A stable and predictable exchange rate is crucial for fostering foreign investment and trade.The success of Milei’s economic reforms will depend, in part, on maintaining confidence in the Argentine Peso and avoiding the boom-and-bust cycles that have plagued the country in the past.