economic, Eduardo Correa LahozHe spoke with Channel E and analyzed the situation of the Central Bank in light of the impossibility of accumulating reserves. He also pointed to the fact that the peso began to lose its credibility and stressed the demand for the dollar expected during the holiday period.
“The main problem that Argentina faces today He had no reservations“said Eduardo Correa Lahoz. He also explained that with a GDP approaching 600 thousand million dollars, “the country must have reserves In an amount not less than 80 or 100,000 million“.
What is the size of central bank reserves?
But the situation is much more serious: “Right now we have negative reserves. We are below 2 billion If we do not count the contributions of the International Monetary Fund, These negative reserves rise to 16 thousand million dollars“.
In this context, Lahoz stated that the peso is losing its importance: “It is a currency He has no supportRegarding Cavallo’s proposal to raise stocks, he stressed that the conceptual observation is correct, but not immediately applicable: “Argentina must move towards a process in which These reserves should be similar to those in the rest of the worldBut we have to see where Argentina comes from.”
The issuance of the peso and its direct impact on inflation
Likewise, he stated that to buy dollars you need pesos, which can lead to inflation: “If you now have twice as many pesos, This will generate a huge inflationary process.“.
For this reason, the interviewer emphasized that the state cannot accumulate reserves by accelerating issuance, as economic manuals recommend: “This country is not normalHe has not behaved as the economics guide says he should in the last ten or twenty years.
Regarding the exchange rate regime, he commented that the Argentine exchange rate is linked to the lack of reserves: “If the Argentines decide to go on vacation together to Brazil or Miami, They will have to increase demand for dollars Since there are no dollars, Which makes the price rise“.