In dialogue with radius 10, the president of the Central Bank, Miguel Fish, He explained the reasons for the initiatives and justified them. “The problem of our exchange balance is a high level of imports, mainly due to energy prices that have risen markedly: they indicate an increase of 80%”he indicated.
In addition, the official revealed that the expansion of the stocks to the dollar is because in absolute terms energy imports increased 205% in the first five months of the year, compared to the same periods in 2021. “This brings difficulties for the accumulation of reserves. We imported energy for almost US$5,000 million over the planned US$8,000 million”stressed the head of the Central.
“What we ask is that companies seek financing for the imports they need this year. It is an appropriate way to find a solution to the situation we have. That is why we extended the permission for automatic licenses to non-automatic ones, and we extended the list of imports of luxury or sumptuary goods to 365 days”Pesce detailed.
Dollars taken care of: what are luxury or sumptuary goods
According to the etymological origin, sumptuary derives from the Latin word “sumptuaries”, which is identified with waste or expense. It is a sum of the noun “sumptus”, which can be translated as “spent”and the component “-arius”, which is a relationship suffix. It is an adjective that qualifies that linked to luxury. Luxuryon the other hand, is related to pompous or to the good that, to obtain it, requires having resources that exceed the average.
Ultimately, it is called sumptuary good to the product that has a very high price and that, in general, is considered as something accessory, that is, that is not essential. Typically, luxury goods are defined according to the country’s average income level or the average price of other products of the same type. For this reason, luxury goods are applied a special tax.
The measure to take care of the dollars reaches various sumptuary or luxury products. Although a detailed confirmation is still awaited, it would reach:
- High-end cars and motorcycles;
- private jets (small planes);
- recreational boats (boats);
- premium alcoholic beverages;
- gourmet foods (the most expensive in the world);
- pearls, diamonds and other precious stones.
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luxury and abuse. They estimate that there are 21,000 planes in the world that offer private services to tycoons of all kinds. They invoice US$32,000 million a year, although not everything is clear.
In a recent statement from the Ministry of Economy it was pointed out that for the Government “It is essential to prioritize access to the currencies that the Central Bank has for what is necessary to sustain production and economic recovery, while taking care of reserves and exchange rate stability.” “Argentina needs to continue the growth it is undergoing with sustainability and inclusion”they wrote.
A few months ago, Guzmán’s entourage has been repeating in different dialogues with the press that the maintenance of economic growth is directly related to the reserves in the Central and, at the same time, with the administration of exchange policy.
The dollars are the “muscle” that allows Guzmán to make decisions. As they said last week in Economy, in 2022 the activity will have a growth of 4% only due to the statistical drag, although they expect that from the second quarter the pace will begin to slow down.
Source: Ambito
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