“We are all turning into gamblers, not producers, and that does not work,” the former minister said. He reiterated that it is one more step towards dollarization.
The former Minister of Economy Martin Guzman analyzed the reaction of the markets after the economic announcements of the weekend. In this sense, he defined them as “super short-term palliative that generates more volatility.” The statements come after a Monday of falls in bonds and an increase in country risk that persists during this session.
After the intervention of the Ministry of Economy in the exchange market, the former minister assured that it was a “super short-term palliative”what it is “bad for everyone” because they end up taking “Too many decisions too quickly.” “We all become gamblers, not producers, and that doesn’t work,” defined.
Guzmán made an exhaustive analysis of the economic situation and the prospects of the Caputo administration. “It is clear to everyone that the Government’s fiscal and monetary scheme is exhausted. Everything that was supposed to lead to a quick recovery is not happening and expectations have already changed”he defined in dialogue with Radio con Vos.
The economist said that, in these seven months of management, “everything that is attempted ends up being sterile because for the macroeconomy, the real economy always rules: if you do not produce more, you always end up having problems with the dollar.”
For Martín Guzmán, the Government’s announcements are another step towards dollarization
In an extensive document published by the consulting firm Suramericana Visión, the former Minister of Economy Martin Guzman He assured that phase 2 of the “new monetary regime” announced by Javier Milei and Luis Caputo, are a “step towards dollarization.” There, he spoke about the role that the US elections, the IMF and the accumulation of reserves will play.
The former minister detailed the steps to dollarize, according to Javier Milei:
- The question was raised need to convert the monetary base and remunerated liabilities in pesos from the BCRA (at that time, Leliq plus Pases) to dollars at a “free” exchange rate. The amount needed for such a conversion at that time amounted to US$40.8 billion.
- It was necessary orput the fiscal accounts in order (This was actually necessary for the implementation of any program that would help stabilize the economy).
- The dollars needed to dollarize could come from new external market financingfrom the sale of shares in the ANSES Sustainability Guarantee Fund and a loan from the IMF.
Currently, according to the latest report from Suramericana, the amount of dollars needed to convert the remunerated liabilities in pesos of the BCRA equivalent to US$28,134 million.
Source: Ambito
