Domingo Cavallo’s plan
In this regard, the former Minister of Economy considered that “it does not mean replacing all pesos with dollars, because obviously the Central Bank has no way of doing it, but it does mean that it can function as a currency in every sense.”
In dialogue with the LN+ channel, Cavallo maintained that all transactions “other than exports and imports, they must occur between individuals in a totally free foreign exchange market.”
“Only in this way is it possible for Argentine capital that is abroad to re-enter,” he added.
For the former official, the effects of this program would not be immediate, but he indicated that “as people get used to the fact that the dollar also works as a currency” the country’s perspective would change.
“It makes no sense for the Central Bank to sell its foreign currency for travel and tourism,” he said.
The blue dollar, in free fall
Meanwhile, the blue dollar continues with the downward trend that began two months ago.
After touching $295 at the end of August, the parallel dollar began to adjust its price downwards until closing last Friday at $277, its lowest value since September 15.
Among the factors that influenced the drop in price is the greater economic and political stability with the arrival of Sergio Massa, the fulfillment of goals with the International Monetary Fund (IMF) and the search for a fiscal and monetary order that even with greater restrictions to the access of foreign currency, it was possible that the financial dollars did not advance violently.
In this way, the gap that is still high managed to be below 90% with an official dollar that moves more in line with inflation.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
