“We will continue to maintain the inter-band float,” Economy Minister Luis Caputo said at the FIEl annual conference held on Wednesday, November 12 at the Buenos Aires Stock Exchange. Caputo was responsible for closing the meeting, in which several speakers participated, including former Economy Minister Domingo Cavallo.
Among other things, Caputo stressed that the exchange rate system remains “first and foremost, Because the scopes are well calibrated.We believe it all“It’s not time yet.” – To get them out – he commented, “A“Argentina is a country that suffers from a weak and fragile demand for money, which is not normal in practically any country.”He confirmed. He even noted that “this can’t even be explained by market fundamentals.”
The private sector has adjusted the price of one dollar to $1,500, although it requires more competitiveness
Why does this happen? the minister asked. “because In Argentina, any shock strongly affects the demand for money. “One cannot float away when the country does not have the stability and credibility to do so,” the minister added.
Among other things, Caputo commented on this “The range cap is very well calibrated. Today, Argentina does not have an exchange rate competitiveness problem, and practically does not want to look at it in any way. For those who love the historical tape, we take as reference the exit from the shares of (Mauricio) Macri, since at that time no one thought to ask whether our currency was overvalued, and today the exchange rate is 1,270 pesos, with the addition: Macri at that time had 6 points of fiscal deficit and 3 points of current account deficit, something we do not have,” Caputo said, adding that “some might think that we could afford some kind of fiscal deficit.” “The change is even less than that,” he said.
He also pointed out that “You don’t need to be an economist to understand that it is difficult to have record exports in quantities if you have an overvalued currency. We have a record of exports in almost everything, the knowledge economy, services and goods now as well The scopes are clearly well calibrated“, suit.
As for the question that you see repeated in the media that indicates this The country should already have a floating dollar systemThe minister commented: “We are not only faced with the problem of volatility in the demand for moneyOmani Riyal, today Argentina is also witnessing political fluctuations that do not allow thisE, which does not make flotation appropriate,” he pointed out: “I always say, to graduate from a serious country, We cannot continue the political alternation that moves from capitalism to communism. We are seeing this in the past four months. “Look at how high the risks are for the country when the political offensive begins, when people begin to fear the possibility of a return of Kirchnerism.”
To this effect, Kabuto said forcefully: “Well, these are the consequences, then We cannot pretend to float when our political alternative remains communism, DrSorry, it’s not serious. We want to become a serious country, and we have to start by obtaining rational political alternatives, and this does not necessarily mean that they are our alternatives. There is no problem with there being a centrist or left-wing alternative, but we all have to follow the same path, as is the case in any normal country.”
In addition, the Treasury Chief resumed the speech he gave yesterday to insurance professionals at the annual CIDES event.
“We are at a turning point in our history,” Minister Luis Caputo said in his presentation. In addition to the decision to maintain the macroeconomic system, it is combined with social support. “The people voted to follow the total system, to leave behind the times of devaluation and default. They said the road might be difficult. At the ballot box, after 20 months of trying this new path of faith and freedom, they decided to follow it. To this is added a third axis, which is governability. “We will have a different Congress and all the reforms we send out will have much greater acceptance and will be easier to pass than the Congress we have. now.”
“We have a unique opportunity,” the Treasury Secretary said. “On the eve of changing history 120 years later.”
“Our country was able to reduce the deficit by five points in one month. We have now been in surplus for more than 20 months and no one disputes that the surplus is here to stay.”
“We have gone from an inflation rate of 1.5% points per day to 2 points per month. We are very confident that by doing our homework, we will converge on global inflation next year.”
In development…
About The Author
