When Pro-Bitcoin Argentina president Javier Milei took office this month, he closed half the government ministries during his first day at work. The move gave some citizens hope that he would fulfill his campaign promises — including reducing inflation, stabilizing the economy, currency, and even hinting at crypto-forward policies in the future.

Unfortunately, he has already reneged on a major campaign promise to reduce inflation. Instead, Javier Milei doubled inflation overnight.

Within 24 hours of assuming the presidency, he devalued the Argentine peso’s official exchange rate against the US dollar from 366.5 pesos per dollar to 800 pesos per dollar.

The country’s economy minister, Luis Caputo, said in a televised statement that Argentina would target a further monthly devaluation of 2%. To be clear, that is an official forecast to inflate.

See Also: Argentina Devalues Local Currency Peso, Is Bitcoin Adoption About To Happen

Argentina Praised By IMF Amid ‘Temporary’ Inflation Hike

Over two-thirds of Argentina’s population lives in poverty. The annual rate of inflation is now at 161%, according to November figures shared on Wednesday. 

The readout is both president Milei’s first since taking office and the highest figure of this year.

Inflation is set to get worse. However, Caputo said the negative effects are necessary now for prosperity later. 

“The objective is simply to avoid catastrophe and get the economy back on track,” Caputo said. “There is no more money.”

The International Monetary Fund, of course, praised the country’s reduction of government spending. 

IMF’s managing director, Kristalina Georgieva, called it “an important step toward restoring stability and rebuilding the country’s economic potential.”

I welcome the decisive measures announced by President @JMilei and his economic team today to address 🇦🇷 Argentina’s significant economic challenges—an important step toward restoring stability and rebuilding the country’s economic potential.https://t.co/1zZRES9anE

— Kristalina Georgieva (@KGeorgieva) December 12, 2023

Argentina’s central bank was expected to announce a new monetary policy yesterday.