The Minister of Economy, Luis Caputo, said that the new government exchange scheme is not a devaluation of the national currency, although he admitted that It is not known “where the exchange rate is going to be parked.”
“Regarding the Devaluation, I would say it is a technical error. This is not a devaluation, it is a flotation ”, Caputo said during the press conference he offered together To Santiago Bausili, the president of the Central Bank in the microcine of the Treasury Palace.
There, and after an extensive introduction in which the official recalled the inheritance received and what the government was doing so far, explained the fundamental elements of the exchange band scheme that will be launched from Monday to replace the fixed exchange rate Adjustable by “Crawling Peg” to 1% monthly.
The head of the Treasury Palace said that between the price of below of the $ 1,000 band and the $ 1,400 ceiling in the team in charge there is no estimate: “Where you are going to park, we don’t know it,” he said.
Caputo recalled that “Last year in July the dollar was worth $ 1,400 and everyone said it would go to $ 1,800 ”. “I remember that I gave a television interview and said that far from spending that, that it was most likely to converge to the official dollar and four months later it was worth $ 1,070 ”, added.
In addition, he stressed that “that was a context in the BCRA had no support”, so he considered that “You have to imagine now that it will happen with a plenty of reservations.”
“The truth is where the dollar is going to be parked, we don’t know it, ”he insisted Caputo, who clarified that “A devaluation is when you are guaranteeing a minimum of exchange rate. ” “We are not doing it. It may be that from here to one year the dollar is worth $ 970 ”, assured.
At that point in the explanation there was an intervention by Bausili, who recalled that The dollar could not go down to $ 970 “for the band.”
Caputo responded, cordially that “Yes, because the band converges and can go below even. ” Faced with this, Bausili said: “I thought you didn’t believe the band ”, what generated laughs among the attendees.
But beyond that, as the economist had anticipated it a couple of days ago Carlos Melconían, Dispossed from the libertarian hosts, it would be a semantic problem “They will devalue, but they will say that this is not a devaluation”he had said in a television interview.
A specialist consulted by Financial scope With the past in the IMF, he considered that the government’s announcement is a form to propose that devalues to $ 1,400 and that, from there, you go to sell. The analyst considered that “it is not clear what the scheme of the Central Bank will be To accumulate reservations, if you have to buy them if the dollar broke the barrier of $ 1,000 “.
Meanwhile, the economist Emiliano Libman said: “I translate the IMF’s request. The Government does not sell dollars to less than $ 1,400.”
Source: Ambito
