The Minister of Economy said that political uncertainty maintains the high interest rate and conditions the activity of the financial market, even after advances in reserves, disinflation and normalization of the Central Bank.
The Minister of Economy, Luis Caputohe said Thursday that “in a situation with manifest electoral noise, The last thing we are going to do is let pesos to the market”, When referring to the streaming channel Fuck to the hardening of Lace regime imposed on banking entities. Within that framework, he warned that political factors remain determinants for investor conduct and price formation.
Caputo explained that the perception of political instability It keeps the financial market on alert, directly influencing the interest rate and asset valuation. “The market Price A political risk, the ghost that evil and chaos return, and that for the market is important, ”he said.
He recalled that, since December, when the country risk It was at 550 points, significant progress was made: the stocks were lifted, the Central Bank was recapitalized with an agreement with the IMF, an additional US $ 5,000 million were bought and a disinflation process was maintained. “If you had told me that after all this the country would be closer to 400 and not 700, I would have told you that,” he said, and said that the political factor Explain why it remains above that level.
Electoral uncertainty and exchange stability
On the other hand, the minister stressed that the electoral uncertainty It also impacts the bonds in pesos and external debt, beyond the improvement in fiscal accounts and reserves. According to Caputo, investors do not react only to economic foundations, but to the possibility of changes that alter the balance reached.
In exchange matters, he defended the dollar flotation schemeemphasizing that the ticket can rise or lower according to the availability of pesos in the market. He recalled that in July the price advanced 13.6%, but when the rate from pesos – after 5% – the effective increase was less than $ 100. “In the first days of August, $ 85 already fell in nominal terms and with the rate there are another $ 40; It already fell more in August than what rose in July”He said.
The official directly linked the determination of the rate with the legislative and political context. “What is the balance rate of a congress that puts 12 laws to break the fiscal balance in two weeks? The market will say it. The dollar will move according to that rate”he said. In their vision, current rates reflect political factors, beyond strictly monetary logic, which forces to maintain a restrictive bias to avoid pressures on prices.
In this framework, Caputo ruled out that the Central Bank intervenes buying currencies until the end of the electoral period. “Nor are we going to be buying dollars in this situation because it would also be injected with pesos,” he warned, and reaffirmed that The priority is to maintain exchange stability as a pillar of the economic program.
Source: Ambito
