The Government will maintain the rate of depreciation of the peso at 2% monthly. He ruled out dollarization, but ratified the idea of moving forward with “currency competition.”
The Government thus denied that it was considering a new abrupt jump in the exchange rate or accelerating the pace of devaluation.
ambito.com
While the Senate continues debating the Base Law and the fiscal package, the Chief of Staff, Nicolas Posse, will be presented in his first management report and, as it became known, he will give answers about the dollar, the Income Tax, and public worksamong other topics.
Through Management Report number 139 that he sent to the Upper House in the last few hours, the Government anticipated that it will not accelerate the pace of crawling peg. “No change is expected in the monthly variation rate of the official exchange rate for the remainder of 2024.″, notes the document on two occasionsin responses to questions No. 107 and 270.
Government so he denied that he was considering a new abrupt jump in the exchange rate or accelerate the pace of devaluation. Also ruled out dollarization, but ratified the idea of moving forward with “currency competition”for which it already has the endorsement of the International Monetary Fund (IMF).
“The Ministry of Economy specifies that the dollarization of the economy is not on the economic agenda, but free currency competition is in effect as the final phase for the process that began in December with the cleanup of the Central Bank’s balance sheet,” it is stated. expresses.
However, it does not put a figure regarding the value of the exchange rate or the Central Bank rate estimated for the end of the year because, as in several of the responses, it indicates that the projections of the macroeconomic variables for 2024 “are in process.” update and review in view of the treatment of the two bills sent by the PEN to the National Congress, that is: (1) Law of Bases and Starting Points for the Freedom of Argentines, and (2) Law of Palliative and Relevant Fiscal Measures.”
On the other hand, regarding the BCRA’s reserves, he confirmed that until April 30 the reserves were still negative at US$864 million, but recalled that the entity’s red was US$11.2 billion at the time of assuming the position. current government. He also defended the purchase of foreign currency as a result of monetary policy, and not to stop payments such as imports.
Source: Ambito
