Likewise, it transpired that the team of Sergio Massa is negotiating with the International Monetary Fund additional support to the 7,500 million dollars that the organization would disburse on August 23.
Price negotiations will also include oil companies to set prices. new increases in fuel pricessaid official sources. And the tariff scheme will be analyzed so that mismatches do not occur.
The idea with which economic management will approach the discussion with companies is that the transfer to devaluation prices (pass through) must be lower than the 22% that increased the official dollar. In this sense, it will analyze how much it affects the costs, among other variables.
An important point that the authorities take into account is that “There are already a large number of prices set for financial dollars, so we hope that the pass through is lower than in other occasions.”
For the purposes of contemplating a moderation in price increases, official analyzes show that in recent years companies have increased their profit margins.
A study by the Secretariat for Economic Policy shows that the increase in Gross Business Margins has been very marked, going from the CPI total to values from 25% in 2017 to more than 46% in the months of April to June 2023.
In other words, It is considered that companies have the capacity to absorb increases and, in parallel, improve wages.
tax situation
On the other hand, the economic management trusts that this exchange scheme, with the anticipation of the devaluation, will contribute to strengthening the liquidation of foreign currency. Immediately, this Monday the BCRA bought 220 million dollars. This measure, along with the rise in interest rates, “will make it possible to rebuild reserves,” they point out in Economy.
The authorities also expect the fiscal situation to improve. In this regard, they consider that the worst moment for the Treasury coffers has passed, when there was a drop in income from export withholdings derived from the drought, and that “we will get closer to a more balanced fiscal situation in the coming months.” .
In this sense, they affirm that the Country Tax “will have a positive impact on fiscal matters, which will cause less monetary expansion.”
election result
In relation to the rise in the dollar arranged this Monday, in the Palacio de Hacienda it is commented that it was a decision that should have been made on a very special day due to the political situation and in the context of pressures presented by the market.
The unexpected triumph of the libertarian candidate javier milei in the primary elections, it hit the markets negatively, with falls of up to 15% in the value of bonds, setbacks that reached 9% in Argentine shares and a skyrocket in the prices of alternative dollars -the blue rose $80 (13 .22%) to $685, according to a survey of Ambit-.
Faced with this complex panorama, the economic leadership adopted two important measures on Monday. On the one hand, it ordered a 22% increase in the official exchange rate (it went from $287 on Friday to $350 today), seeking to keep it fixed until October.
On the other, it decided to raise the monetary policy rate by 21 percentage points in order to retain deposits in pesos. Thus, the nominal rate of the 28-day LELIQ went from 97% to 118% (209% annual effective rate).
devaluation “It was a decision taken by the Ministry of Economy, a proactive reaction” to the exchange tensions that have been generated in recent days, they affirm in the Palace of Finance. In this way, they rule out that the measure was imposed by the IMF.
Precisely in terms of the relationship with the Fund, in Economy they indicate that “It is negotiating” that the disbursement may be greater than US$7.5 billion “to intervene” in the exchange market and prevent the gap between the official dollar and the financial ones from widening.
This Monday a statement from julie kozackDirector of Communications of the organization in which she stated that “We value the recent policy actions of the authorities and the commitment to safeguard stability, rebuild reserves and strengthen fiscal order”.
Source: Ambito
