President Javier Milei recognized that the Decree of Necessity and Urgency (DNU) that he presented this Wednesday on the national network and that deregulated important aspects of the economy works as a “pre-dollarization”, since it allows contracts to be agreed in foreign currency.
“You can now agree to contracts in foreign currency and they have to be fulfilled in this currency. In other words, we are enabling you to use foreign currencies in your transactions. Do you realize the shock of freedom that all this implies?” he remarked in dialogue with Radio Rivadavia.
The blue dollar is no longer illegal
On the other hand, Milei assured that buying the blue dollar is not illegal. She did so by clarifying that after the DNU there is freedom to trade with foreign currency. Along these lines, she maintained that still “we cannot remove the trap” since conditions must improve.
Dollar: when will the exchange rate be lifted, according to Javier Milei?
Along those lines, he maintained that still “we cannot remove the trap” since conditions must improve. “I am in favor of closing the BCRA, but first I have to clean it up and that is what we are doing,” he concluded in a radio interview.
“We are going to remove the stocks when we finish cleaning up the Central Bank and the entire monetary issue, and when we finish cleaning up the problem of the monetary surplus in the economy. Once we finish those two things, we are going to remove the stocks“he added.
In his radio statements, the libertarian condemned the modality of the stocks and expanded on the problem that it generates within the economy: “The stocks generate an excess of demand in the foreign exchange market that has as its counterpart an excess of supply in the rest of the economy. This implies that the price of the bonds are low and therefore the interest rate jumps and implies that you have an excess of supply in the goods market and activity drops, for some reason we have a GDP per capita that is 15% lower than what we had in 2011.
“This generates a drop in the demand for labor, which under normal conditions would generate unemployment, but in Argentina salaries are very low. The unemployment rate is low because basically salaries are miserable. A third of workers today are poor, Work is not a mechanism that will get you out of poverty. In that context, removing the stocks is a mechanism that will allow economic activity to rebound, but We cannot open the stocks until the conditions are in place to be able to withstand an abrupt portfolio change.“he added in relation to the possibility of eliminating exchange regulation of foreign currencies.
Blue dollar: it is no longer illegal to buy in “caves”
When asked about the possibility of buying “200 dollars,” Milei said: “Today in the free market You will be able to buy all the dollars you want and no one will chase you. You go and buy what you want. Now you can agree to contracts in foreign currencies and they have to be fulfilled that way. Do you realize the shock of freedom that all this implies?”
In this context, Javier Milei announced the end of the illegality of the blue dollar, an activity that to this day, due to current regulations, is punishable by law.
The National Foreign Exchange Criminal Regime Lawthe sanctions regime in force for those who operate in the parallel dollar, establishes the illegality of all exchange negotiations that are carried out without the intervention of an authorized institution, such as banks or exchange houses.
Source: Ambito
