Argentina’s Economy Minister resigns amid the disaster of the peso, diesel engines

BUENOS AIRES, Argentina – Economy Minister Martin Guzman submitted his resignation Saturday, acting at the end of a week as Argentina’s currency hit an all-time low against the dollar and truck drivers staged rallies. shortage of diesel fuel.

Guzman announced on Twitter that he had sent a multi-page resignation letter to President Alberto Fernandez.

“With deep conviction and faith in my vision of the path Argentina should follow, I will continue to work and act for a more just, free and sovereign homeland,” Guzman said. write.

With the Argentine peso depreciating against the dollar, the government on Tuesday made it more difficult to obtain dollars to pay for imports. It works as the dollar buys 239 pesos on the unofficial market used by citizens and companies to bypass official channels.

Argentina has suffered from a shortage of dollars for many years, partly due to Argentines’ distrust of their currency amid high inflation. Prices are up nearly 30% this year, and analysts predict inflation could rise above 70% for the whole of 2022.

The truck driver’s shutdown has disrupted economic activity, including deliveries to ports of grain, one of Argentina’s main imports.

On Wednesday, the government said it was trying to increase the availability of diesel by allowing more biofuels to be mixed into the fuel and also by suspending import duties on diesel.

Argentina produces diesel but does not have enough for its needs and relies on imports, with world prices rising due to the disruption of the pandemic and Russia’s invasion of Ukraine.

Analysts say that one of the reasons for the shortage is that oil companies import diesel unprofitable because the government prevents them from charging the purchase price in the international market.

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