The former Minister of Economy, Martin Guzmanwarned this Monday about the danger of dollarize the debt of the Central Bank (BCRA). From the social network Javier Mileiwhich he pointed out as “the worst of all inheritances” in his attempt to dollarization.
Martín Guzmán warned about the dollarization of Javier Milei
In that line, Guzman pointed out the problems that the minister’s maneuvers could generate for the future of the economy Luis Caputo.
“Dollarizing the debt in pesos of the Central Bank of the Argentine Republic is not a relief,” said the former Minister of Economy in the government of Alberto Fernandez.
From your X social network account, Martin Guzman He warned of the severe problems that Milei’s economic plan entails and thus pointed to dollarization. “It is, on the contrary, the beginning of dollarization, the worst of all inheritances that could be left to the Argentine people,” he said today.
Debt in pesos: Economy called a new BCRA tender
Such a high number of maturities could lead one to assume that the Minister of Economy, Luis Caputo, has to resort to exchange operations, as it was done throughout 2023 but, strictly speakingmuch of it would have its renewal assured.
That is because most of the securities that mature are in the hands of state agencies and banks. Both of them guarantee a successful renovation. One of the largest holders of Treasury securities is the Central Bank in whose portfolio there are $31 billion. 20% of the financial entity’s assets are made up of this type of bonds in pesos.
In that context, Last Tuesday, Economía called a new tender for securities, in which three Boncers came onto the market with maturities in June 2026, 2027 and 2028, with zero coupons.. But as reported in the official call, this placement will have the objective buy back Treasury debt. Nothing is said about the February due dates.
In the background there is an operation that is trying to intensify Economy and the management of the Central Bank, which is to neutralize the greatest amount of money possible to improve monetary aggregates and thus improve the entity’s balance sheet.
In January, according to data from the securities company GMA Capital, the monetary base fell 34% compared to a year ago to $7.4 trillion. When Javier Milei took office it was at $10 billion and it remained that way. The aggregate Private M3, which constitutes the broad money supply, fell 19% in the same period and it was about $44 billion.
Source: Ambito
