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Argentine Minister of Economy resigns in peso, diesel predicament

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The Associated Press

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Buenos Aires, Argentina (AP) — Economic Minister Martin Guzman submitted his resignation on Saturday, the week when the Argentine currency hit a record low against the dollar and truck drivers protested over shortages. Acted at the end. Of diesel fuel.

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

"With deep conviction and confidence in the vision of the path Argentina should take, I will continue to work and act for a more just, free and sovereign home," writes Guzman. ..

The Argentine peso fell against the dollar, making it difficult for the government to get the dollar to pay for imports on Tuesday. This means that the dollar bought 239 pesos in the informal market used by citizens and businesses to bypass official channels.

Argentina has been suffering from a dollar shortage for years. This is partly due to Argentina's distrust of its currency amid high inflation. Prices have risen by nearly 30% this year, and analysts predict inflation could exceed 70% across 2022.

Truck driver outages disrupted economic activity, including delivery to grain ports. One of Argentina's major imports.

The government said Wednesday that it is trying to increase the availability of diesel by allowing more biofuels to be mixed with fuel and suspending diesel import taxes. ..

Argentina produces diesel, but not in sufficient quantities to meet its needs, relying on imports, and pandemic turmoil and Russia's invasion of Ukraine have raised global prices.

Analysts say that one of the reasons for the shortage is that it is profitable for oil companies to import diesel because the government has banned the government from charging for purchases in the international market. Say it's not.