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Before the red circle, Javier Milei rejected that there is an exchange delay and confirmed that he will move forward with a currency competition

Before the red circle, Javier Milei rejected that there is an exchange delay and confirmed that he will move forward with a currency competition

President Javier Milei He insisted that in Argentina There is no “exchange delay” in defending the current value of the peso against the dollar, which is maintained at a devaluation rate of 2% monthly, and he stated that “it is a wrong hypothesis.” Likewise, he ratified his plan to move forward with a “currency competition” instead of the dollarization that he proposed during the campaign and said that the exit from the exchange rate is getting closer and closer.

He said it before the Inter-American Council of Commerce and Production (CICyP), one of the most important meetings of the “red circle”, where hundreds of businessmen spoke before and applauded him at length. “From my point of view, what most analysts are saying is wrong”he asserted.

“Argentina’s problem is not exchange rate delay,” the President emphasized and described those who think that as “chant”. He thus ruled out a sharp jump in the dollar because, he maintained, it generates greater poverty.

Milei criticized the level of “fatal arrogance” of the specialists. “They are pretending to know things about which they have not the faintest idea,” complained the President, at a lunch at the Alvear hotel, where the main leaders of the business chambers and half of the National Cabinet are gathered.

On the other hand, Milei highlighted that “we continue to accumulate reserves”, at which time he took the opportunity to praise the head of the BCRA, Santiago Bausili. In this framework, he insisted on moving forward with a “currency competition” instead of the dollarization that he proposed during the campaign, in which “the peso is firm as a rock” but that each person freely chooses which currency to operate with.

In addition, he celebrated that “inflation is on a downward path” by remembering that in April the CPI reached 8.8%, the first time in 5 months that it is below double digits.

“We are making a stabilization plan with correction of relative prices,” highlighted the president. “Those who screwed up say that there is no stabilization plan… is inflation going down by chance?” He shot back.

“We are solvent, the market realized it”Milei celebrated by highlighting the drop in country risk, the rise in bonds, and the very small exchange rate gap, which is now close to 20%.

Milei reiterated that when the economy rebounds the Government will move forward with lowering taxes, and argued that this is precisely the reason why it does not share greater resources with the provinces because in this way they could stop the initiative. In this sense, he demanded that governors and mayors also move forward with the tax reduction.

President Javier Milei praised the Minister of Economy, Luis Caputofor having managed to lower public spending and ironically said that from now on he will call it “little plaster pig, because to get a handle out of it you have to break everything.”

When speaking before the businessmen of the Inter-American Council Cicyp, Milei highlighted the economic direction and warned: “If someone wants to break Minister Caputo, they will have to break me first.” “We are making an adjustment of 15% of the Gross Product, impossible, nothing,” Milei emphasized.

“This debate seems interesting because from my point of view what most analysts are saying is wrong,” Milei said. In addition, she assured that “a few have worked for years with these stupid analyzes and now they need to justify, or as they were wrong in December and January, they want to force reality to stick their heads in.”

A large part of the Cabinet accompanied the President during the presentation from the main table. In addition to Caputo, there were the general secretary of the Presidency, Karina Milei; the Minister of the Interior, Guillermo Francos; the Minister of Security, Patricia Bullrich; Foreign Minister Diana Mondino; and the president of the Central Bank, Santiago Bausili, for whom Milei asked for applause for having lowered the monetary authority’s deficit.

Entrepreneurs’ support for Milei

The businessmen who are part of the Inter-American Council of Commerce and Production (CICyP) provided emphatic support to President Javier Milei, and considered it necessary that his political and economic project “can continue in the long term.”

This was indicated by the head of that Council, Marcos Pereda, for whom the path that the Government took “is complex and requires strategies, but we know of the President’s courage and we also know that there are no alternatives, because there is no money.”

“We are facing a complex cultural battle, which requires boldness and pragmatism, but also institutional dialogue,” the leader emphasized.

And he assured that the State “failed to satisfy social demands with false populist promises, which were exposed today.”

Pereda stressed that “the fruits of the (Government’s) project are already visible: macro variables improve and inflation has a clear downward curve.”

In his opinion, the private sector should be “protagonist of development and employment”, but he considered it necessary to “rethink the labor market”, beyond what the draft Base Law proposes, understanding that “the union sector acts more like a destroyer rather than a job creator”.

Pereda emphatically supported DNU 70/23 and the Base Law, stating that both initiatives constitute “a step in the right direction, which most of us support.”

Source: Ambito

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