President Javier Milei went out to support the Minister of Economy Luis Caputo that this Thursday he advanced that Government awaits a disbursement of U $20,000 million from the IMF and ruled out a devaluation when it is “Irrelevant exchange discussion.”
“Talking about the exchange rate is irrelevant because I am going to have so many dollars that they support the monetary base, that they could remove all the monetary base from the official exchange rate and they would have plenty U $ 24,000 million”He said in radio statements.
Javier Milei defended the agreement with the IMF
In radio statements, Milei assured that the loan with the IMF – more contributed by the World Bank, the IDB and CAF – will allow “Bring the Gross International reserves au $ 50,000 million. That is, the balance of the Central Bank that today has gross international reserves of US $ 26,000 million, would count At least with US $ 50,000 million“
“If I take the monetary base in the traditional format, which has to do with the weights that we use to make transactions and the lace of the banks, that is, the cash that the banks have in cash, those are $ 29 billion. If I have those $ 29 billion convert them to the official exchange rate, Argentina’s monetary base is $ 26000 million dollars“The president said in radio statements to El Observador.
According to the libertarian, this means that “each weight has twice the support of dollars, basically, to the official exchange rate.” “If we do it at the parallel exchange rate, 1300, the monetary base would be US $ 22000 million. That is, I have US $ 500 billion to support US $ 22,000 million. I mean, I have more than double. “
Along these lines, the president again ensured that “this agreement does not raise the debt because it is to take those BCRA funds to pay the debt that the treasure with the BCRA has.” As he exemplified, the counterpart of that will be that we are going to have “Less inflation.”
Finally, the libertarian differentiates his agreement from the rest because Argentina has already made the fiscal adjustment that the IMF usually demands. “In the Argentine case the difference is totally abysmal because in the Argentine caseArgentina already made the adjustment. Argentina made adjustments much deeper than those demanded by the international monetary fund itself. “
Javier Milei’s criticism about the previous agreements with the IMF
During the interview, the president sought Differently differentiate Of the previous agreements signed by Argentina with the Fund. “It is absolutely different from what has happenednot only to Argentina but in the history of the International Monetary Fund, “he said.
According to the libertarian leader, in a traditional agreement with the fund it occurs with “countries that suddenly have fiscal deficit, they were being financed in the capital market and when a cut in the financing occurs the International Monetary Fund gives you an assistance to make the adjustment gently and slowly and finances that transition; it finances the fiscal correction and the rollover of the debt.”
On this occasion, according to the justification of the ruling party, they have already done “A fiscal adjustment in the treasure of five points of the GDP in one year” and “an adjustment of 10 points of the GDP in the Central Bank.” “That is, Argentina, already part of the adjustment was made“said the president.
Milei also took advantage of the interview to strongly criticize the renegotiation of debt by Martín Guzmán. “It means an increase in debt and for me the increase in debt is immoral Because it is to pass the feast of the generation present to the future generation, which does not even vote. He is deeply immoral, “he described.
“The immoral caraura of that unpresentable we had, the intern that officiated as Minister of Economy, had the caradure of saying that there was no fiscal adjustment. The man said that, as public spending he did not go down then there was no fiscal adjustment. It means that he was going to burst our heads with taxes. That type of adjustment is recessive and in fact that man left in the middle of a crisis “, Milei shot.
Despite the harsh criticism for whom he was an official of Alberto Fernández, Milei did not comment on the historical agreement signed by Luis Caputo – Who was Minister of Economy of Mauricio Macri – for a total of US $ 56.3 billion.
Source: Ambito
