Through his social networks, Guzmán cited a video where the current President explained that “we paid the interest for January and for the capital, if we cannot roll, We already have the REPOs set up for next year, so we can cover ourselves. We pay whatever happens.they will realize that we are solvent and the interest rate will collapse.” In that context, he asked: “Is this why they are taking the Central Bank’s gold out of the country? Javier Milei, Luis Caputo and Santiago Bausili?
He later added: “A REPO is like pawning grandma’s jewelryYou give the gold in exchange for dollars. Then you have to give back the dollars to get the gold back. If you don’t have the dollars, the pawn shop (in this case, an international bank) keeps the gold.”.
Luis Caputo justified the transfer of gold from the Central Bank
Caputo defended his move by stating that “It is much better to have it guarded outside where they pay you something.” and, although he implied that the shipment was indeed made, he did not respond yes or no to the query. Likewise, even The position of the BCRA is yet to be known, as it has not commented on the matter.They barely give an institutional response.
“The BCRA received a request for access to public information from the Deputy and National Secretary General of the Banking Association requesting details on the administration of reserves as it relates to the gold belonging to the Bank and We are working on the response to that request.which will be provided as established in the regulations,” they limited themselves to responding to the query of this media in the building at Reconquista and Perón.
Many read this difference in the answers as a possible short circuit between the president of the BCRA and Caputowho, until now, functioned almost as one person. Rumors are beginning to circulate in the city that say that Santiago Bausili begins to demand its autonomywhich is recognized by the charter of the entity he heads. Some analysts also do not rule out that this is a staged act so that the minister can distance himself from this decision regarding gold in the future.
Javier Milei sought to clear up doubts about debt repayment and reserves
In a streaming interview given this Friday, Javier Milei guaranteed payment of the external debt -mainly, with the International Monetary Fund (IMF)- and stressed the stability that the reservations of the BCRA following the latest announcements.
Explaining the new monetary policy design, the President explained that “Non-intervention equilibrium is: the amount of money is fixed, the exchange rate fluctuates and the interest rate is given by international equilibrium.“If I leave you the same amount of money, the intervention is zero. I give you back US$0.67 in the market, so I have US$0.33 left in the BCRA with the same monetary base, which improves the support of the monetary base, the gap is reduced and the level of intervention has decreased,” he said.
He later acknowledged that “this is not magic, because you have a loss of freedoms with the cepo, but “While I fix the stocks I’m in a bind.” He also criticized economic specialists who point out that the difficulty of paying debt is reflected in the growth of country risk, pointing out that their refusal to “issue money to buy reserves, then They tell me to kick the Argentines’ asses with inflation to pay the debt”: “In the face of that argument, We show that we have the money to pay. […] “Dollars are purchased with fiscal surpluses, not with monetary emission from the BCRA.”
At other points in his interview with Neura Media, the president stressed that “we made the largest fiscal adjustment in the history of humanity. The chainsaw never stops. Not only will it not stop, but it will continue to. There is always something to cut, everything that can be cut we will cut. “Until I see inflation at zero I will not stop. I hate inflation. I want to destroy inflation.“, he added.
Milei with Fantino.png
Referring to the plan to lift the exchange rate traphe insisted again on the importance of achieving macroeconomic balance and said that his obsession is to “bring inflation to 0%.”
On this idea of inflation rate convergence with the “crawling peg”, he added: “As soon as we reach one, it will go down to zero, and at that point the exchange rate may remain fixed or become free. Until I see inflation at zero, I will not stop.”
Milei insisted that “If I opened the clamp on the first day, it would create a crisis, they would loot the supermarkets and in January I was no longer there, they would put all the blame on me and they would have a rebound like the one that Néstor Kirchner had.”
Source: Ambito
