Argentine Economy Minister Switch Downplayed

Argentine economic policy is not likely to change under new economy minister Miguel Peirano, say Wall Street analysts. Peirano replaces Felisa Miceli, who resigned this week amid an investigation into cash found at her office. Peirano was secretary of industry since 2005, has close links with the industrial sector and has also worked as chief economist of the industrial union, according to Goldman Sachs. “We do NOT expect the new Minister of Economy to introduce any changes in the government’s economic policies. In particular, we believe that Minister Peirano will be supportive of maintaining the weak ARS policy,” says Goldman. “We expect the government’s weak peso policy and generous electoral spending to remain unchanged,” says Credit Suisse. “The fact that Peirano is not seen too close to interior commerce secretary Guillermo Moreno, the man perceived by the media to be behind the methodological changes at INDEC, could be a relief for inflation-linked debt,” says Merrill Lynch. The change is not good for the president, whose wife is embarking on a bid for the presidency in October elections. “Miceli’s departure is an important political setback for the government, as it comes only three days before the formal launch of Cristina Kirchner’s presidential campaign,” says Credit Suisse.