The economist warned about the risks of lifting the exchange rate, described the debt with the fund as “unpayable” and analyzed the government’s economic strategy.
Carlos Melconian, The economist and formerly of the National Bank, conducted an analysis of the economy, the exchange scheme and the agreement with the International Monetary Fund (IMF) in a key moment for markets. In the interview, he warned about the risks of leaving the exchange rate, and acknowledged that the debt with the background is “unpayable.”
Dollar: The debate on exchange flotation
One of the central points of the interview was the exchange scheme and the statements of the Minister of Economy, Luis Caputo. Melconian was blunt when referring to the possibility of a exchange rate flotation in the short term: “The flotation is an arrival path, not starting. That was the mistake of President Macri.” In that sense, he warned about the risks of an abrupt output of the current scheme: “You can’t float because you go to hyper. It won’t float,” He expressed in dialogue with the zenital streaming channel+.
The relationship with the IMF and the political strategy of the government
Another of the key issues was the relationship with the International Monetary Fund. Melconian said the government faces a complex situation: “The goal of why you go to the background is because it leads you to reality. ” However, he was critical about the viability of the agreement: “The fund is unpayable.”
The economist also focused on the use of the resources that will come from the next agreement: “That money that will enter to change the papers, can you use it or not to use it? If you cannot use it, it is the same as the papers.”
Melconian also referred to government management and its political structure. “This is an autocastated government,” he shot, and questioned the lack of a figure that imposes leadership in economic decisions: “What I see at risk in this type of conformations is who fuck is planted?”
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In addition, he pointed out that the main strength of the ruling is the weakness of its opponents: “The asset of this Government is the rivals. And the problem is that those who go outside in.”
Despite your criticisms, The economist considered that the government is still in time to make structural changes in its strategy: “I think they are totally in time to make a structural vision if they leave dogmatism.”
Finally, he insisted on the need to clearly define the exchange policy: “From the first half of the year, nine months ago, I have been saying: What is the exchange scheme?”
Source: Ambito
