“We must fight against the political bias of some governors. On the other side they are doing politics, they are not dying for things to turn out well,” he said. Minister of Economy, Luis Caputo, within the framework of a new edition of the AmCham Summitwhich performs the United States Chamber of Commerce in Argentina (AMCHAM) at the Convention Center of the City of Buenos Aires.
The official, who is one of the most important in the current government administration, indicated that he considers it “super important” that the omnibus lawor basic law, and said that “some governors They began to understand it, but others, not so much.”
Likewise, despite the current crisis that Argentina is going through, partly as a result of the adjustment of spending carried out by the GovernmentCaputo anticipated that, “if there are no more resources and we have to go to a zero deficit, there will be more adjustments in expenses.”
The stocks: what is Caputo’s plan
Another of the topics that Caputo referred to was the dollar stocksbut far from anticipating a rapid lifting of this regulatory framework, he said that “We are not going to take unnecessary risks“We are going to do things when we are certain that they are going to turn out well.”
“I read in some places that it could already be released from the trap. Maybe it would be possible, but we are not here to take risks, we will do it when the conditions are met“, said. He highlighted that the Government “does not take into consideration the anxiety variable.”
And he emphasized that, at this moment, the economic team is focused on cleaning up the balance sheet of the Central Bank (BCRA), solve the tax problem and route commercial debtas in lowering the inflation and keep the gap at minimum levels.
Prices and inflation, what he said at AMCHAM
With regards to the prices and inflationanother hot topic of late, said that “businessmen know that their products are totally outdated, and the response was that they are going to lower them,” Caputo said.
The minister recognized that “the objective of the current administration is to reach a coin competition to lower inflation with a shock model“.
A coin competition: Caputo’s goal
“Let’s go to a coin competition that will have a free float. It will be when the conditions are met. Inflation will fall much stronger and the recovery will be faster,” he anticipated.
“We do not want a gradual decrease in inflation like Peru in three years”, said Caputo and trusted that “a currency competition would lower shock inflation and recover activity more quickly” although he regretted that, at this time, “we cannot do it because more money would be needed.”
The IMF, another of AMCHAM’s topics
Regarding negotiations with the International Monetary Fund (IMF), Caputo said that they are talking to the organization and “they are open to a new program, within the framework of which, if it were reasonable to give a little more money, they are also open to doing so.” However, he pointed out that There is still a need to reach an agreement in this regard. and that it is “somewhat premature for now” and anticipated that, in that framework, they will “have fiscal and monetary conduct to avoid shocks.”
Source: Ambito
