“We clearly have to go to a new monetary regime without that stupidity that I have read these days of unreservedly having dollarization, a total nonsense”assured Melconián in a harsh criticism of the ideas launched by the libertarian deputy Javier Milei, and the radical from Evolución Alejandro Cacace.
The president of the business school of the Cordoba foundation gave him a wink at the idea of convertibility. As he pointed out to him on more than one occasion Sunday Horse, the father of the currency board that operated throughout the 1990s, was strictly speaking a two-currency system. Cavallo pointed out in recent exhibitions that the important thing about convertibility was bimonetaryism and not so much the parity of 1 to 1 of the peso with the dollar. In those years, transactions could be agreed indistinctly, contracts signed or credits contracted in both pesos and dollars.
According to Melconian, the program that he prepares to present the next president who emerges from the 2023 elections has as its principle the idea that “we must give the freedom to choose and legally recognize the dual currency” of the Argentine economy.
Ironically, as is often the case in his presentations, the economist said that “the balance of the Central Bank is a Church, because one goes to the Church in an act of faith”. He pointed out that the entity chaired by Miguel Pesce “It has almost zero reserves and US$70 billion in liabilities”
“All those who have a dollarization process in their heads have to call Coperfield to see how this economy is dollarized. Coperfield comes, does like this (some gestures) and fixes the balance of the BCRA “he said when remembering the famous magician and illusionist of the 90s’
In this regard, he considered that the situation of the Central Bank “is an impediment to a stabilization plan.”
In another aspect, he hinted that the idea of a new economic program will have a first ishock implementation to stabilize and then follows a sequence of measures because it considers that if it is put into practice, it could generate confidence in the short term.
On the other hand, he warned that “This is not the time for a row”, alluding to the convertibility exit plan implemented by Jorge Remes Lenicov in 2001, which implied the pesification of the economy. In justifying his appreciation, he said that at that time “the country was capitalized”, which allowed it to avoid indexation for the next 10 years. Therefore, he argued that “You have to be very careful with the idea of a bomb plan.”
Source: Ambito
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