The announcement of the implementation of the Fair Prices plan goes in this direction. He wants to reach December 2023 with a monthly inflation of 3.5%, halfway to the values currently registered. The bet of the new program is strong: almost 2000 products that for the next 120 days must maintain a constant price.
Many companies support the measure. But the procession goes inside. In the Palacio de Hacienda they think that the first objective (still underway) is to reduce the exchange rate gap. For this, the priority was -and continues to be- the accumulation of reserves with the IMF’s visa in terms of “fiscal path”.
These two factors would make it possible to go through the coming months taking pressure off devaluation threats and the fragile financing of pesos, while waiting for the arrival of harvest dollars and building a bridge of confidence to cross the “wall” of falling maturities. on the other side, with the coming government.
The tools available to the minister have also changed compared to their predecessors. The big difference, now, is what makes Massa a “super minister”, that is, the accumulation of powers. This is so because the same window that negotiates food prices is the one that will enable dollars at the official exchange rate to be able to import to companies and supermarkets. And because, in addition, the Government will face a price agreement with the distributed input chains in the next few hours with the aim of keeping prices constant, again, lowering the speed of remarking, inflationary expectations.
The latter is something that matters to the companies that entered Fair Prices. Trade administration is key because it will seek to prioritize inputs over final goods. There is something else. The Government intends to set costs while promising to “accelerate” imports to a sector that, in fact, is not very demanding of dollars. If you think about it, the Government is, little by little, consolidating a broad agreement with the different sectors.
The mechanics are different from what was imagined at the time. But the goal is the same. Meanwhile, President Alberto Fernández left the city of Paris today for Bali, Indonesia, where he will participate in the G-20 Summit, which will take place Tuesday and Wednesday, where all eyes will be focused on the bilateral meeting he will hold with Xi Jinping. and Joe Biden. Related to the latter, and to Massa’s company that joined the entourage in Paris, Fernández will request an extension of the Chinese swap, which today amounts to the equivalent of some US$18.5 billion. A meeting with the head of the IMF, Kristalina Georgieva, is also scheduled for Wednesday.
Source: Ambito
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