Luis Caputo, a former central banker and the leading candidate for Argentina’s new economy minister, held a meeting with local and international bank officials on Friday to outline the economic plans of President-elect Javier Milei, according to three sources and a banking group.
The gathering at the La Rural conference center in Buenos Aires occurred as Milei, advocating for “shock therapy” to revive the beleaguered economy, races to assemble his economic team. Although Caputo is strongly considered for the role, he did not confirm his appointment during the meeting, as per two of the sources.
Milei, a libertarian outsider, has not officially announced any appointments, but signs pointing to a more orthodox economic team and policies have generated positive market reactions. Since winning the run-off election last Sunday, bonds have surged nearly 14%, and equities have risen over 40%.
Caputo stressed the necessity of an abrupt economic adjustment to address inflation approaching 150%, prevent an imminent recession, dismantle various capital controls, and rebuild negative net reserves, estimated at $10 billion.
“Our approach is fiscal and monetary shock from day one. The roadmap is orthodox and without crazy things,” Caputo conveyed to the bank representatives, as reported by a senior banking source present at the meeting.
Caputo, who served as finance minister and central bank chief during ex-president Mauricio Macri’s conservative government, represents a more orthodox choice for Milei’s new administration, set to assume office on December 10.
The local ADEBA banking association confirmed the meeting, with its president stating, “Caputo’s vision gave us peace of mind and confidence.”
Caputo did not delve into specifics regarding how Milei’s government plans to address public spending or the central bank’s substantial pile of Leliq short-term notes. However, he affirmed that the government would swiftly lift currency controls, although not immediately, and dismissed plans for short-term dollarization, emphasizing the need for fiscal and monetary stabilization first.
“First, you need a stabilization program,” Caputo asserted during the meeting.
While Milei had prioritized shutting the central bank and dollarizing the economy in his campaign, Caputo acknowledged that these actions would take time in the face of the ongoing economic crisis. Despite this, Milei declared earlier on Friday that shutting the central bank was “non-negotiable.”
Caputo highlighted forcefully addressing inflation as a top priority but did not provide detailed plans for the future government’s approach. He discussed the imperative need to combat inflation and reduce the Leliq pile, though without specifying the strategies.
A third bank source, confirming the meeting, stated, “Given his knowledge of the market, he is one of those responsible for gauging the position of the banks before the new government.”
As Argentina awaits official announcements from Milei, the potential collaboration with Caputo signals a shift toward more conventional economic strategies, generating both curiosity and cautious optimism in financial markets.
