The Minister of Economy left some definitions on the end of the currency restrictions, the gap, inflation and the dollar. To begin with, he downplayed the rise of the last few days and avoided talking about the lifting of the exchange restrictions.
The Minister of Economy, Luis Caputoreferred to the dollar in the midst of exchange rate tension and said: “It worries me and always occupies me, but much less than what is said. and what they are trying to install in the market.”
Along those lines, he added: “We arrived with a dollar worth $1,170 and it is worth $1,320, it rose by 10%. At this point, under the previous government, at this same time, it had risen by 160%. The most important thing to reduce the gap is to reduce inflation“, he said in a television interview.
The minister touched on several issues of the economic situation such as the clean-up of the Central Bank’s balance sheet, the dollar, the gap, the cepo and the outflow of gold from the BCRA abroad.
Caputo said that the country tax will be removed. “It is a distorting tax that directly affects prices. When we remove this tax in September, we will see a new significant drop in inflation. It will effectively end in December and there will be a 17% recomposition of the exchange rate. We want to lower inflation and generate competitiveness by lowering taxes.”
Inflation due to gap effect
“If we lower inflation, the gap will decrease. and we will be able to have a much more orderly exit from the restrictions,” Caputo commented. And regarding the restrictions, the minister avoided giving details and, on the contrary, indicated that no dates could be given.
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“That impatience of wanting to get out of the trap is what can lead us to an error. You don’t get out of the trap quickly, you get out well. If we had wanted to hurry up and get out of the trap and we had left in December or January, it would have been a disaster,” perhaps a little more learned now than from his previous administration.
“Today we are much closer because we have solved a lot of problems, but it is not the ideal time.. I can’t set a date either. Imagine if I told you, as an exporter, ‘I’m going to get out of the restrictions in November,'” he concluded.
Source: Ambito
