President Javier Miley defended the exchange rate policy At the leaders’ meeting that I organized Historian and Point by point he dismantled the arguments of those demanding that the government accumulate reserves.
In an extended intervention, the President questioned the logic behind this request and warned against its consequences The costs it will entail for the most vulnerable sectors.
In addition to reference A Conceptual contradiction In the general debate, the President said that with zero deficit and the ability to roll over debt, it would not be necessary to increase holdings.
“If I have a renewal, what is this thinking that I should have a reserve to pay? If I pay the interest with the balance and roll the debt into the market, what are they talking about?” he asked, though he admitted that the “coca menace” had weakened that possibility during his administration.
Along these lines, Miley He categorically ruled out the option of buying dollars by issuing pesos. He said frankly: “Since this has no corresponding demand for money, it generates an excess supply of money, and what does that generate? Inflation, that is, a tax on the poor.”
He added: “Those who ask me to do so They are asking me to destroy the lives of Argentines. It has cost us a lot of work to lift 13 million Argentines out of poverty.
The president too Reject monetary sterilization As some advisors suggest.
“The other alternative is not only to pay the interest, but also to pay the principal. But if my deficit today is zero, what should I do? Cut public spending further? Look, We are working to reduce it, but I warn you that about 75% to 80% of public spending is social spending. So what do they suggest to me? Raise taxes. You know? He added: “Inflation tax or outright tax, to me it’s still taxes.”
The President considered two reasonable alternatives. The first is Take on additional debt When the market window opens: “I change the maturity profile, lower the price, and also save a few extra dollars in case problems occur. It makes more sense.” The second option is to conduct privatization operations, liquidate those assets, and leave them in the central bank.
Finally, Miley questioned the fairness of the proposal: “Do you think it’s fair to artificially buy insurance, ruining those who have less? Insurance is protection. So, you They tell me that I must ensure a crisis by generating a crisis. “It’s strange.”
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