In televised statements, the official from La Libertad Avanza (LLA) detailed the Government’s forecasts for the coming months and within the framework of a monetary plan based on zero emission: “We are closing the fourth emission tap now, which was the pesos that the BCRA issued, to buy dollars from the market due to the difference between exports and imports. Those pesos issued, we do not have the guarantee that it is a counter-demand for pesos, a counter-demand for money.”
Along the same lines, Caputo highlighted the decision of “sterilize the issue that also leaves a profit to the Central Bank due to the difference between the official and parallel exchange rates. We have closed all the taps, there is no more issuance in Argentina.”
“As I said in January, At some point there will be a shortage of pesos in Argentina “Because not only are they not being issued any more, but also because of the primary surplus we are contracting at a rate of 1 billion or 1.5 billion pesos per month. So, the peso market, which is just another market, is going to balance out. And in the competition of currencies, which was always what we said we were going to do, the peso is going to be the strong currency. Nothing has changed from what we said we were going to do from day 1,” he predicted in relation to the Argentine currency.
Caputo: “We’ve already turned the corner”
In his interview with La Nación, the Minister of Economy ensured the end of the recession and the beginning of economic recovery“There is nothing more important than seeing the numbers. This recession that we saw, because now we have turned around, we see the numbers from May of the monthly estimator of economic activity and it has already confirmed the recovery,” he said.
He added: “In May I said that the floor had been March, April and yesterday’s numbers confirmed it. The economy grew by 2.3% compared to last year and by 1.3% compared to April. If you look at the indicators, there was also a trade surplus, with energy exports growing by 16% and industrial exports by 15%. However, he described these figures as part of an “uneven” growth.
For Caputo, “it’s a phenomenal recovery. When you do your homework, the results come out wellIt is no coincidence that Argentina has had a bad time over the last 100 years, particularly the last 20. Argentina has always done everything wrong. Nobody has seen it this way. Argentina has never reached a macro-order situation because of a presidential decision.”
Caputo: “They will have to sell dollars to pay taxes”
Earlier, the head of the economic portfolio used his social networks to answer a question about the decision to close the issuance of pesos to begin the purchase of dollars in the Single and Free Exchange Market (MULC) that has been in effect since last Monday.
“Nothing changes in the exchange rate. This is a deepening of the monetary scheme. To the extent that the BCRA injects pesos by purchasing dollars in the MULC, it will effectively sell dollars in the CCL to sterilize those pesos. In other words, the amount of pesos will no longer grow. It will only shrink, since the country currently has a fiscal surplus. As we have been saying since January, the peso will be the currency in demand, since taxes will continue to be paid in pesos and the amount of pesos will be reduced further each month by the equivalent of the primary surplus,” he explained when announcing the operation.
Source: Ambito
