The blue continued to rise and this day reached $418 in the City. This rise implied a rise of $18 in just two days. Stock exchange rates are not far behind. The CCL and MEP rose more than $16 and set new all-time highs.
In this situation, Ambit talked with Camilo Tiscornia, Director of C&T Asesores Económicos, who provided an overview of the causes behind the increases and what could happen in the short term.
For the economist, “there is a breeding ground” and in this regard he described the situation: “There are a lot of liquidity in the economy turning. Also there is little inflow of dollars due to the droughtand a lot of uncertainty about how the government is going to finance the fiscal deficit“.
For these reasons, Tiscornia maintained that the official exchange rate will continue to rise and the alternative exchange rates will accompany this trend.. “When you see the prices and compare them with other indicators, everything indicates that they should continue to grow,” she explained.
Despite this upward trend, the economist explained that “at some point they stabilize because this is very volatile” but that, in the long run, exchange rates adjust upwards.
“The amount of pesos that is turning around in the Economy, the few reserves that there are in the Central Bank, the expectations, and the uncertainty“, in an election year, detailed Tiscornia, “Everything leads you to generate a cocktail so that there is a dollarization of the portfolios.”
In this regard, he mentioned the debate that exists about what would happen if there is a dollarization of the economy. In fact, in recent days, a private report raised doubts about the viability of the idea proposed by Javier Milei.
According to this report, if Javier Milei becomes President of the Nation and takes this idea forward would imply that the Cash with Settlement (CCL) increase to $800 taking the current parities of the treasury bonds in dollars at 25%, in order not to obtain financing.
In this regard Tiscornia opined: “What Javier Milei proposes generates fear. Fear appears, and, if you add to it that after the elections, there could be a strong change in economic policy, everything becomes a breeding ground for these things to happen.”
Source: Ambito
