The Economist Carlos Melconian considered that the dollarization proposal presented by Freedom Advances (LLA) “It is about to be archived” because its promoters “are realizing that it is not going” and he admitted that, within his team, one of the options being analyzed is a “exchange rate doubling.
“I think that this process (dollarization) is about to be archived because they are realizing that it is not going. They are behind very competent professionals such as Roque Fernandez and carlos rodriguez who understand very well what is happening and are running away from these options,” Melconian said.
In statements to Marcelo Longobardi’s program on Radio Rivadavia, the eventual Minister of Economy in a presidency of Patricia Bullrichrecognized that his team analyzes as a transition alternative a “unfolding” of the exchange market with a commercial dollar and a financial dollar until the conditions for unification are met.
Melconian held that “the word stocks is already obsolete” because “with the passing of the months it became a cobweb”.
Dollar: how is your bi-monetary proposal
With this scenario, he announced that his proposal for bimonetarism proposes a change in the Civil and Commercial Code so that transactions that today are formalized in pesos but require legal and accounting devices because they are actually carried out in dollars are legal.
“This movement has to be endowed with legality” and requires a reform of the Commercial Civil Code so that, for example, the purchase of a car can be made and registered in dollars.
Melconian clarified that “the bimonetary is the coexistence of the peso and the dollar” but remarked that “It is not a free floating exchange rate.” at the beginning of the process.
The economist explained that “the cobweb” that is the current stocks will be disarmed by maintaining “sensible macroeconomic policies” and, in this sense, he gave as an example that the entry of temporary dollars for speculation in the financial market and free exit will be prohibited.
“Dollars will not be able to enter to make a difference and withdraw them whenever they want,” he warned.
He added that “the central bank will have a different exchange regime and an alternative is the division between the financial dollar and the commercial dollar”.
“The exchange rate stabilization and the economic regime is one of the 20 issues that we have in mind, while a third (due to the result of the election) only talks about one issue (dollarization) and the other does not talk about anything (alluding to the Minister of Economy , Sergio Massa)”, graphed Melconian.
On the other hand, he considered that the possibility of an “orderly transition was delimited” and observed that he does not appreciate the will of the ruling party to make it a “collaborative transition”.
In this framework, he advocated for the citizens who voted for a change in the two thirds with the highest volume of votes to analyze which is the best.
“There are proposals that require a fierce liquefaction, not inflation, a liquefaction. Either they require kicking off the Central Bank’s liabilities or they require someone to come with a magic wand and dollarize the deposits,” Melconian said, criticizing the initiatives of La Libertad Avanza .
In that analysis, he considered that the dollarization proposal “is about to be archived because they are realizing that it is not going”.
Source: Ambito
