Nicolas Dujovne, Argentina’s economy minister, has announced his resignation from his post after a potential financial crisis made even worse by the president’s defeat in a primary poll.
After the president, Mauricio Macri, endured a drastic loss a week ago, the country’s peso has lost 20% of its value against the United States dollar.
Mr Dujovne issued his resignation through a letter to the president, saying that he had given his all, but the current financial worries were too much for him.
President Macri was beaten in the primary elections by his rival from the left-wing party, Alberto Fernández.
Alberto Fernández managed to win the vote with 47.7% of the votes, whilst Mr Macri managed to receive just 32.1%.
Cristina Fernández de Kirchner is Mr Fernández’s running mate, and she comes with plenty of experience in administering Argentine politics, being a former president herself. She made a name for herself as being the head of an administration that was heavily focused on protectionism and plenty of state intervention in the economy.
She was also just the second woman to be Argentina’s president, with the first being Isabel Martínez de Perón, yet the latter only became president after the death of her husband, who was the president that had assumed office before her.
After the primary result, Fitch and Standard & Poor’s, two of the largest credit-rating agencies in the world, lowered the country’s debt rating after arising concerns with regards to a possible future default.
Just days after the political defeat, Mr Macri announced a number of measures, such as income tax cuts and increases in welfare subsidies, along with petrol prices being frozen for three months.
Mr Dujovne stated that his resignation came due to his concern for the current economic team, signalling that it needed “significant renewal”.
He also added in his letter that “I believe my resignation is in keeping with my place in a government that listens to the people and acts accordingly.”
Current economy minister for the Buenos Aires province, Hernan Lacunza, will assume the role of economy minister instead of Mr Dujovne.
Mr Macri was elected as president in 2015, pledging to do his best in order to boost Argentina’s economy, mainly with a large number of liberal economic reforms. Once he did come into power, his primary target was to restore international trust in the economy, issuing budget cuts along with eliminating subsidies.
A “preventative credit line” of €44.82 billion (£41 billion) was announced in May 2018 by Mr Macri from the International Monetary Fund, with the deal being negotiated by Mr DUjovne himself.
With Argentina currently suffering from a recession with a 22% inflation rate for the first half of the year, it is one of the highest rates in the world at the moment, and more than a third of the country’s population is living in poverty at the moment.