The former president of Banco Nación was hard with Caputo’s economic plan and said that the problems of the Argentine economy do not respond only to “Kuka risk.”
The renowned economist Carlos Melconian questioned exchange policy of a government that is still far from fixing the macroeconomy, according to its vision. In that sense, he suggested to Luis Caputo’s economic team to review the current scheme of flotation bands, or else to pay the costs of a free dollar.
“The government has to check what you want to do with the value of the dollar and the stocks. Or else, pay the cost of going to a free and floating exchange rate of truth“said the former president of Banco Nación.
In that sense, he said that the problems of the Argentine economy do not respond only to the attempts of the opposition to break the fiscal balance, as the ruling holds, but also to a wrong economic plan. “It is not that the macro does not reach the micro, it is that the macro is not resolved“He deepened in an interview on Radio Rivadavia.
The referent of orthodoxy stressed that the exchange rate regime is wrong “at least since April (when the bands began)” and warned that the government It must urgently begin to accumulate reservations. In addition, he said that “people do not feel that there is more employment”, with the exception of some improvement in “changas”, and that “lowering inflation from 300% to 25% does not mean improving purchasing power.”
Dollar: The market creates in the bands for the short term, but not for the length
It is worth noting that the official dollar is currently operating very close to the band’s roof ($ 1,472). Analysts argue that the market believes in the short -term sustainability of this scheme due to the power of the Central Bank (BCRA) to intervene at higher levels to the ceiling, although there are some signs that reflect doubts for the medium and long term.
One of them is the incompatibility between the current level of reservations and debt maturities for the next 12 months, which makes the market believe that the dollar needs to be at a higher level. Others is the little demand of Lecaps that expire after the October elections, despite the fact that their performance exceeds a rise that would have the exchange rate if you test the roof of that moment.
Source: Ambito
