The management of Javier Milei faces days of tension after the defeat in the Buenos Aires elections. Despite the turbulence, the president did not announce major changes in his cabinet, or his economic plan.
The former Minister of Economy pointed directly against the flotation bands.
The economist and former Minister of Economy, Gabriel Rubinstein, He analyzed the economic plan of President Javier Milei – and his minister, Luis Caputo – after the electoral defeat that suffered freedom progresses (LLA) in the province of Buenos Aires, which caused a Monday of falling markets and rises from the dollar. Before the new scenario that opens, less than 50 days of the national elections, Rubinstein explained: “I believe that the exchange scheme must be modified: the agreement with the IMF is missed.”
“The macroeconomics was always weak changing. And when they got US $20,000 million, they did not know how to give solidity to the exchange scheme,” The economist said on the current agreement with the International Monetary Fund. Finally, Rubinstein also referred to the lack of changes in the cabinet after the hard electoral defeat: “They are losing 3-0 and lack 25 minutes, they do not want to make changes, we will see how they arrive. Sometimes you have to be lucky.”
Gabriel Rubinstein’s criticisms of government exchange scheme
According to the economist, the current flotation bands – which entered into force on Monday, April 14 of this year – “They should have been designed differently.” In that sense, he said: “You cannot design a exchange floor down with inflation. If inflation had been 0, there would have been reasonable.”
“We have to have if or if a exchange scheme that enables us to buy many dollars. Today if I wanted to buy dollars at 5 minutes it is on the roof, it has to go out to sell dollars. The exchange scheme was dysfunctional to Argentina,” said the economist who later sentenced: “This scheme already failed.”
On the future and the possible changes of direction that the government can implement, Rubinstein recommended to go to “a managed flotation scheme, with a higher dollar.” In that sense, he focused on the importance of accumulate reservations And he explained that, with a policy that involves buying many dollars, naturally “the dollar will go up.”
DOLLAR BCRA INTERVENTION RESERVES
“ You have to assume you were wrong. That has a cost: that inflation will not continue to fall, it will be 2, 3, 4 or 5 % per month. It depends on how you do the change operation, “he warned
On the response that the market had on the day after the elections – and thinking about the changes for October – Rubinstein detailed: “The market can worry Because reservations or that are from the IMF – that they do not want to be sold – or that are of the lace, that should not be soldalthough I recognize that they have always been sold, they have always been used. “
The government and its electoral challenge
Regarding the result of the last elections and October elections, the former Vice Minister analyzed: “You can make dialogue tables what you want. Now if people believe that there is effectively corruption, an important flag falls and associate it with Karina Milei, Martin Menem, Lule Menem and all of them continue … And what can I tell you “.
In that sense, he also remarked that the market’s response also arises following the political scenario raised by the Government. “If you had an opposition that did not discuss the need for a fiscal balance, but assumed it, well that would change. But the government He has scared that the opposition are all irresponsible mafia degenerates fiscal “, sentenced.
Source: Ambito
