The economist gave his forecast for the economy following the October 26 elections. He stated that the official value of the currency should be higher and noted that it would not be “a tragedy” if it reached $2,000.
Carlos Melconian warned that economic indicators show signs of a possible devaluation. According to the economist, the value of the official dollar should be higher and the country is going through a stage of transition that requires changes in the exchange market.
The former head of Banco Nación maintained that “It’s not that there is a smell of devaluation, there are numbers that reflect it”. He then compared the situation to a medical metaphor: “Doctor (Scott) Bessent put three stents in you, and at some point we have to See how the movie goes when I take the walker out.”
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In dialogue with TN, he explained that, given the growing demand for foreign currency: “When you have more demand than supply, as is the case in Argentina, or you restrict, or you allow another price.”. In that sense, he assured that the dollar should be above the current one: “The floor is the ceiling of the band”said.
Furthermore, he considered that “it wouldn’t be a tragedy” that the dollar was offered at $2000 and stressed that, looking to the future, the Government must move towards a more flexible exchange system. “Now there is a transition. By 2026, you have to have a free exchange market”held.
Criticism of the agreement with the US
The economist also questioned the new agreement between Javier Milei’s administration and Donald Trump’s government. “To me, when you have to go play this role of pseudo-colonialism “It makes me angry”he expressed, and added that he does not like “this format of “The American Secretary of the Treasury takes charge of the Central Bank of Argentina.”
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“We ended up there because “what was done failed”he pointed out about the economic direction and the lack of accumulation of reserves. “The failure was not accumulating reserves,” he emphasized.
Melconian ruled out that Milei’s goal of reaching 0% inflation in 2026 is possible. “I think the President is going to have to postpone the idea of annual single-digit inflation”said. And he concluded: “If in 2026 the exchange rate is adjusted, it is on track and inflation is 20, I am going to tell you that it is a success.”
Source: Ambito
