Caputo says Argentina has a dollar surplus as unemployment claims rise nearly 30%

Luis Caputo, Argentina's economy minister, tried to reassure investors at the International Monetary Fund (IMF) and World Bank meetings. He said that "Argentina has a surplus of dollars" and pointed to stronger reserves at the Central Bank of the Argentine Republic (BCRA). Ámbito listed inconsistencies in what he told the international audience. Earlier this year, gross reserves passed $40 billion partly through a repurchase agreement with international banks. Borrowed dollars of that kind are not a surplus.

The labor market is weakening. The number of registered workers claiming unemployment insurance rose almost 30% in the year to September, to 112,056, Clarín reported. Over the past two years and nine months, 473,186 people have drawn the benefit.

Rising oil prices are now adding to inflation pressure and working against disinflation. Retail prices rose 1.9% in September and wholesale prices 3.2%. With Brent close to $110, analysts quoted by Clarín expect further gradual increases in gasoline and diesel prices.

Politics is getting harder for the government. The Guardian reported that President Javier Milei, facing a slump in the polls, has taken economic measures against the Falkland Islands' oil industry and suggested its fisheries could be next. Argentina calls the islands the Malvinas and claims them, and Britain administers them. The Peronist opposition held rival rallies on Saturday, where Buenos Aires Province Governor Axel Kicillof declared that Peronism will return to power.