Augustin Etchebarne He pointed out that the Central Bank recently paid more than one billion dollars, as part of the Bobrial entitlement. In conversation with Channel EHe stressed that this payment would have a minimal impact on Argentina’s total reserves, as the majority of the funds are kept within the country. “In principle, it does not have a significant impact on total reserves, because the payment remains in Argentina, except for a small part of $60 million.He explained, but explained that the real impact will depend on other operations carried out by the central bank.
ichbarn He also talked about managing external debt and reserves. In his opinion, the International Monetary Fund plays a major role in the current economic situation, but “Argentina is much better than it was in November 2023Thanks to debt consolidation and US support. This support, according to The Economist, allows the country time to face important payments, such as a $4.8 billion bond in January 2024.
International trust and global geopolitics
The main topic of the conversation was the role of the United States in supporting the Argentine economy. ichbarn He stressed that the strategic relationship is not about “final rescue,” but rather an alliance with a common goal of confronting geopolitical challenges, such as the global race for artificial intelligence. “Argentina has rare earths, lithium, copper and very efficient renewable energy. This puts us in a strategic position with respect to the interests of the United States and Europe.“, he expressed.
The Economic magazine warned that the relationship with the United States is closely linked to the need to secure the resources necessary to develop artificial intelligence. In this regard, he stressed that “If Argentina can take advantage of its natural and strategic resources, it will be able to generate a huge flow of exports“, which would boost the economy in the long term.
Risk of missing opportunities
ichbarn He also analyzed the risk of Argentina losing its opportunities. He pointed out that the country was in the past an “expert at missing opportunities,” citing the case of soybeans during the government of Nestor Kirchner. “Under Kirchner, Argentina had an extraordinary opportunity with soybeans, the price of which was much higher today“, he stated.
The economist pointed out that Argentina’s future depends largely on internal politics. In his opinion, the recent electoral victory achieved by Javier Miley represents an important change. “I think Miley’s win is an extension point for international investmentsIn addition, he noted, he is optimistic about the possibility of reformulation within Peronism, which could significantly reduce the risks to the country.
Regarding country risks and the goal of reducing them to less than 500 basis points, ichbarn He stressed that this will depend on the government’s ability to restore reserves and generate confidence. “Time will tell, and if the government can recover reserves, the country’s risks will decrease significantly“, he concluded.