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IMF's Western Hemisphere director Rodrigo Valdes has fully delegated all negotiations with Argentina to other officials, the fund announced on Thursday. This decision comes amidst tensions between Valdes and the Argentine government led by President Javier Milei.
According to IMF spokesperson Julie Kozack, Deputy Director Luis Cubeddu and mission chief Ashvin Ahuja are now in charge of talks with Argentine authorities. This move aims to support ongoing constructive engagement with the Argentine authorities.
Earlier this year, President Milei criticized Valdes, leading to speculations about their strained relationship. However, Kozack confirmed in July that Valdes had the full support of the fund's management.
Despite the tensions, Valdes, who holds a Ph.D. in economics from MIT, has been with the IMF since May 2023. He has a background in the private sector, having worked at Barclays Capital and BTG Pactual.
Analysis:
The decision to delegate negotiations with Argentina to other officials signals a shift in the dynamics between the IMF and the Argentine government. Tensions between IMF director Valdes and President Milei have been evident, with criticisms from both sides.
For investors and individuals following economic developments in Argentina, this move could impact the country's relationship with the IMF and its economic policies. Understanding the implications of this decision is crucial for assessing the future direction of Argentina's economy and its implications for global financial markets.