The move was hugely embarrassing for the president just as he was urging ordinary citizens to bear with austerity measures that have seen the poverty rate jump from 40 per cent to nearly 60 per cent.

Mr Posse, insiders say, had failed to adequately brief Mr Milei, who was unaware of the remuneration clause when he signed various government papers, and was subsequently forced into a humiliating about-turn.

The cabinet shake-up comes at a critical time for Mr Milei, who this week is in San Francisco to meet the heads of Google, Meta and Apple, among other business leaders. It is his fourth visit to the United States during his presidency.

The soaring inflation Mr Milei inherited has hit 300 per cent but is finally showing signs of coming down as the president’s economic measures, including sacking 15,000 public workers and closing multiple government agencies, kick in.

A second one-day general strike, in protest at cuts to public spending, shut down much of the economy, from airports to schools, earlier this month.

Yet Mr Milei, who can rely on only a handful of politicians from his Freedom Advances party, is still keen to push through landmark labour, tax and pension reforms. As the new cabinet chief, Mr Francos is expected to play a prominent role in negotiations with legislators.