“We are in a complex situation”, considered Pesce regarding the evolution of the trade balance, which in the first months of the year registered a strong increase in imports, mainly pushed by the increase in international energy prices.
“Because of the war in Ukraine, the fuels and the Energy In general, they increased by 200%,” he said, adding that this brings problems to the Argentine situation. To graph it, he gave numbers: “Currently we are importing US$2 billion in energy per month, when in April we were at US$900 million.”
This jump in the demand for foreign currency to import energy forced the Government to implement restrictions on other sectors of the economy, in order to safeguard the dollars not only to cover the purchase of fuel but also to guarantee the necessary supplies for essential industries.
But the outlook for the coming months should gradually improve, Pesce said. “Both in the long term and when the level of imports decreases when there is less cold and the demand for energy decreases, we are going to have a better balance”assured.
He denied sharp devaluation
Although he did not deny that in recent days there have been jumps in financial dollars and in the illegal market, Pesce pointed out that this is because “speculators always appear.” And he clarified: “The official exchange market moves one billion per day, it has been operating normally. What we see in the government securities market – he said – is that we have had sudden movements because in both markets there is talk of adjustment”, he said.
Following that line, he took the opportunity to question those who sow destabilizing scenarios from devaluation proposals. “I have heard talk of sacrifice and adjustment, but there is no reason for it to happen. We are in a difficult situation but we will overcome it. No need to adjust or sharp devaluations“, he claimed.
Pesce’s statement comes at a time when various economists, including the director of Eco Go, Marina DalPoggetto, They demanded that the government move forward with a shock doctrine. “If the government doesn’t order itself, neither Batakis nor Mandrake will resolve this crisis,” warned the economist and argued that “you need a shock program and this government has no margin.”
Ruled out missing products
For Pesce, the situation “has its complexity” but he stressed that they are in dialogue with the private sector in order to find a solution to the lack of foreign currency. “I was meeting with Coordinator of the Food Products Industries (Copal) last week. We have had a dialogue with the Argentine Industrial Union (UIA). We are trying to find solutions,” said the economist, adding that they have been working “with each of the industries.”
In that sense, he pointed out that they have an open channel with coffee or paper importing companies, who have been asked to finance their additional purchases as they have done so far. “We are not asking them to refinance at 180 days but at 60. In each case we will see. There is a very good atmosphere in the dialogue. They have already obtained 3.4 billion dollars of financing more than last year,” he said.
Beyond the restrictions imposed, he assured that “There will be no shortage of essential products” and pointed out that they are “working together with the companies to be able to cope with this situation” without the need to apply an adjustment or a devaluation since “for them, the worst solution is the one that leads to a recessive situation.”
Source: Ambito
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