Argentine President Fires Diplomat Over Father's Economic Criticism
Washington, D.C. - Argentine President Javier Milei has dismissed Sonia Cavallo as the country's ambassador to the Organization of American States following a critical blog post from her father, a renowned economist.
Domingo Cavallo, who served as Argentina's economy minister from 1991 to 1996, criticized Milei's currency policy, calling it an "exaggerated appreciation" that is depleting central bank reserves.
In an interview on Monday, Milei confirmed the dismissal, stating that "You're either on one side or the other." He labeled Cavallo "disgraceful" for his criticism.
Milei's currency policy involves a gradual depreciation of the peso, while Cavallo's former policy tied the peso to the US dollar. Milei argues that his approach is more successful than Cavallo's, highlighting its lack of reliance on hyperinflation and commitment to fiscal surplus.
Despite Cavallo's concerns, Milei has reiterated that he will not devalue the peso. Economists continue to debate the effectiveness of his currency controls, which have been tightened in recent weeks.