dollar stocks, prices and Argentina outside the BRICS

The designated chancellor of Javier Milei, the economist Diana Mondino, He insisted on the idea of ​​eliminating the Ministry of Internal Trade – advanced yesterday by the president-elect – and ratified the premise of price liberalization.

“Maximum prices, careful prices, have to disappear. What there should not be is price control, it never worked”said Mondino upon entering the 29th Annual Conference of the Argentine Industrial Union (UIA).

And he finished: “If you leave prices free, companies will do the best they can. Competition must be generated.”

At the same time, he confirmed that “the stocks must be released as soon as possible” and stated that the dollars do not belong to the Central Bank but to the exporters.

In turn, when asked about Ambit Regarding Argentina’s entry into the BRICS, the future chancellor expressed: “It was never approved, we have never entered the BRICS.”

Two weeks ago, he had expressed that I didn’t see any “advantages” in Argentina’s entry into the group of emerging countries. It is worth remembering that formally, the country would join the BRICS from January 1.

How was Argentina’s entry into the BRICS?

In mid-October, the president Alberto Fernandez had announced, after meeting with the head of the New Brics Development Bank (NDB), Dilma Rouseff, that Argentina had begun “the process of joining” that organization.

What remained was for the country to make its capital contribution to be able to be part and begin to benefit from credits.

The country’s objective was to be able to access new forms of financing, that do not have the conditions and pressures of the International Monetary Fund (IMF).

What is the BRICs

It is known to BRICS block as the economic, political and social association formed by the countries of Brazil, Russia, India, China and South Africa. The BRICS were considered the paradigm of South-South cooperationand integrates the five emerging national economies that in the 2000s were the most promising in the world.

As of January 1, 2024, the Argentina but also from Iran, Saudi Arabia, Egypt, Ethiopia and the United Arab Emirates.

Until now the five nations with emerging economies or recently industrialized that make up the BRICS It represents almost a quarter of GDP and 42% of the world’s population. It was founded in 2006, when the foreign ministers of Brazil, Russia, India and China met in New York for the debate on the United Nations General Assembly. There, former Russian foreign minister Sergei Lavrov, He declared that he welcomed the “interesting agreements that speak of the interest of the 4 countries in institutionalizing collaboration.”

All these nations have in common a great population (China and India above one thousand four hundred million, Brazil above two hundred and Russia above one hundred and forty million), a huge territory (almost 38.5 million km²), which provides them continental strategic dimensionsa gigantic amount of natural resources and, most importantly, the enormous figures they have presented for the growth of their gross domestic product (GDP) and participation in the world trade in recent years, which makes them attractive as investment destination.