Regarding reserves, last week the BCRA closed a negative week in terms of its interventions in the foreign exchange market with purchases for just US$20 million, despite the fact that May is one of the months with the highest liquidation of foreign currency by agro-exporters. Yesterday, the organization managed to overcome the week with a purchase of US$110 million.
In this sense, the President of the organization confessed that in April “there was a lower result than we had expected” but he was optimistic for May: “it is reversing”.
Regarding inflation, he spoke about the causes: “certain conditions must be met for the effect of the monetary issue on inflation to occur. The increase in international raw materials accelerates inflation”, he expressed in dialogue with El Destape.
“There is no doubt that when there is shocks (shock) devaluation or in the variation of prices of international raw materials, this accelerates inflation, we have recently experienced in our country what happened with the devaluation of 2018 and 2019, when the inflation once again reached levels of 50% for the devaluation blows that occurred that year and what happened early last year and early thiswith the variation in the prices of raw materials”, Pesce explained.
In that sense, he assured that the trust will help “decouple the international price of the premises so that it does not affect the table of the Argentines.”
About him dollar, commented in this regard that ”you don’t have to look at the nominal exchange rate, you have to look at the multilateral real. And we do not have an exchange delay. We have not received any comments on the matter from the Monetary Fund”, he underlined.
On the other hand, he responded to the words of the economist and libertarian leader Javier Milei, who proposed the elimination of the central bank, considering it to be the origin of the excessive emission of money and, therefore, of the inflation that generates distortions in the economy. “To what Milei said, there is no country in the world that does not have a Central Bank.”
“When they annulled the capacity of the Central Bank, as happened with convertibility, we ended up with the longest crisis in history,” argued Miguel Ángel Pesce. “Central banks are necessary,” he added.
Source: Ambito
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