After the Recent economic announcementsamong them the Elimination of the exchange ratethe new scheme of exchange rate flotation inside bands and Final agreement with the International Monetary Fund (IMF), the chief of cabinet, Guillermo Francosthe tone of the discussion about a possible devaluationwhile responsible for opposition sectors for the price rise recorded in March.
What said Guillermo Francos
In radio statements, he said: “What can happen to the dollar is absolutely limitedis what the Minister of Economy and the president of the Central expressed, there can be no doubt about that. What can happen is perfectly established, I would not have any concern about that. ”
The official sought to differentiate the new WARNING STRATEGY of some sectors that pointed out that this scheme represents a tacit qualification to a devaluation.
Even the former president Cristina Fernández de Kirchner He joined the critical voices, although Franks It reduced these accusations and stressed the predictability of the current scheme: “It will not happen, surely. Or if it passes, the next day is at $ 1200, on Wednesday at $ 1100 and Thursday at $ 1000. No one can assume that one thing or the other will happen, there are enough dollars after the agreement with the IMF in relation to the weights of availability in the market. Assume a different thing … it will not happen, I am very calm, the government is very calm with this. ”
For Franksthe understanding achieved with the IMP It was key to allow exchange flexibility. He argued that, although the agency did not impose as a condition the end of the stocks, conversations on how to apply it remained during the last eight months. “The slope lifting had a lot to do with the IMF agreement to have sufficient reserves to have exchange tranquility. Today it is perfectly clear that there are enough reserves in treasure”, Explained the chief of cabinet.
Regarding financing, he assured that the recent agreement provides for the disbursement of U $20,000 millionof which U $ S15,000 million They will be like free availability For next year. He stressed that this plan was achieved with a negotiation “worked and eliminated with a lot of discipline, clarity of both parties, and with a lot of agreement between the Fund and Argentina”He also stressed that this understanding differs from previous agreements by the current context of Fiscal surplusone of the central points of the speech of Javier Milei and his economic team.
Inflation was also part of the official analysis. The index of INDEC marked in March an increase in 3.7%above 2.4% registered in February, with a strong incidence of rise in food. Francos related that rise to political factors: “Within the volatility situation generated by political situations, in these 30 or 40 days there have been issues of political discussions in Congress, this always happens. When there is a political discussion, when the opposition finds a place to attack a stable government, that generates volatility, which added some particular seasonal situations that impacted”
The rise in inflation
Despite the increase, the head of Cabinet said that the inflationary process is in decrease and will be controlled with the implementation of clear rules: “We assume that will happen”, He said, he added:“ When the macroeconomic play rules are so clear, Inflation will endthere is no reason for inflation. Price stability will be obtained in line with international variation, but there is no reason in the Argentine economy so that there is inflation or to generate an alarm. ”
Finally, he highlighted the visit scheduled for Monday of the US Secretary of Treasury, Scott Besentan official close to Donald Trump. According to Francos, this arrival represents international support for the measures adopted and could be accompanied by relevance advertisements, although it was not yet confirmed whether it will include a new financial contribution. “It is a topic of fundamental importance”, Defined.
From the Casa Rosada They assure that the chosen course will have “A very big impact on the economy”, And they trust that the combination of fiscal discipline, according to the IMF and opening of the exchange market will consolidate the macroeconomic stabilization posed by the libertarian government.
Source: Ambito
