Last Tuesday, the government announced another reduction in withholding taxes for the agricultural sector, and the measure opened new horizons what fiscal impact it will have. The Economist Martin Redrado visited the studios of LN+ and claimed that reducing taxes on the countryside “It’s semi-improvised, but it’s a gesture“.
“In agriculture it is important to plan for the long term“It would be important to increase production,” emphasized Redrado. “Although it is not a measure that significantly changes the equation for the producer, We will have more liquidations in the short term“, he added.
Redrado stressed that the tax cut “is a good sign: the signal that Argentina must give so that all productive sectors are competitive.”
In the words of the former central bank president: “We estimate $700 million more than last year. Wheat in January, February and March.” will ease foreign exchange pressure from people buying dollars to travel on vacation“.
During Redrado’s visit to the studios of LN+the analysis of the behavior of currencies was not excluded. From the economist’s point of view “There is a captive market for the dollars that Argentinians have deposited in banks in recent monthsHe then explained: “Especially during the election period there was strong dollarization: Deposits in this currency increased from $30 billion to $35,500 billion.
Despite the notable increase, Redrado clarified: “This is not an exit from the international capital market. This will raise dollars so the government can refinance itself and renew $3.7 billion in debt in January. That’s why I believe it will be very successful today. That there will be oversubscription because the economic team has come out to ask for little and little That’s always good so people are surprised later.“.
When asked about the realignment of the financial system, the former head of the central bank replied: “Argentina relies on financial dollars. “There is an important exit for services and tourism.”
Then he drew a parallel: “There are people who think that it is cheaper to vacation abroad than in Argentinawhich leads to exchange rate pressure and therefore more currency supply. The key is a greater supply of production currencies and not so much in financial terms, because financial supply comes and goes. Creating uncertainty for the future“.
After all, the economist has the future in mind. “The big challenge for 2026 is to create jobs and reduce interest rates: consolidate the foundations for growth and development,” concluded Redrado.
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