Argentine Economy Minister Roberto Lavagna said last night he would not change his monetary and exchange rate policy, despite IMF calls for him to develop a monetary anchor to avoid a return to the hyperinflation of the late 1980s.
"There will be no changes," Mr Lavagna, in Washington for talks with multilateral lenders, told Argentine radio. "No-one can be sure one monetary program is better than any other. The fund accepted that we will continue with our plan," he said.
International Monetary Fund Managing Director Horst Koehler said on Friday his talks with Lavagna had been productive and that the two sides had entered "an active negotiating relationship," which Argentina hopes will yield an aid deal to help end a grinding four-year recession.
But Mr Koehler also said monetary policy was one of a series of remaining hurdles that must be cleared before it will consider fronting any aid. He said the fund would work with Argentina to find a group of experienced policymakers to help design a credible policy.
Argentina's free-floating peso has plunged around 75 per cent in value against the dollar since it was devalued in January after the government defaulted on part of the $133 billion public debt, prompting sharp price rises on supermarket shelves.
The IMF has said Argentina must also resolve finalizing its fiscal framework, address banking sector problems, and reinforce the central bank's independence.