The Minister of Economy, Luis Caputo, He will insist on trying for people to start driving more with dollars In its domestic economy, despite the fact that the first attempts in that sense were not fruitful. The shops did not go out to offer their products to dollar value and consumers did not go with those tickets to buy products.
The systems of Banks, wallets and credit cards are ready to transaction The American currency but the reality is that there was no decoler desire to perform operations in foreign currency.
By case, the latest report of the Central Bank On retail payments, he points out that in February $ 2,947 million had been transferred in a total of 1.9 million operationswhich gives an average of US $ 1,500 per operation per month.
But Caputo believes that the economy can dollarize drying the pesos square to a level on which people have to part with their American tickets, which is known as “Endogenous dollarization.”
Dollars: ads “that will surprise”
In the Expo EFI that takes place at the Conference Center of the City of Buenos Airesthe head of the Palace of Finance formulated an advance: “We want to see that there is remained in dollars and we will be announcing some measure that will surprisewhich will greatly encourage the use of dollars. They will circulate more dollars. “
It is not clear to economists What other measures could be adopted to further encourage the use of another currency other than weight. What they pointed out Market sources consulted by scope is that the government is going to try to clear obstacles that have remained so that It can be transaction with dollars.
The end of that point could be that the payment of taxes with foreign currency is allowedto which it would be at the door of what is known as “coin competition.” The problem of this is legal. It would be necessary to modify the law that establishes that the Weight is forced course currency. In turn, If the State received dollars as part of tax payment, it could also cancel its expenses, including public employee salaries with foreign currency.
But from the market some point out that the Minister of Economy wants to work from expectations: announces that dollars will abound in the street so that the price goes down In the current flotation band. It should be remembered that the Palace of Finance got only into the enclosure of announcing that it will only buy reservations when the exchange rate is located on the floor of the band between $ 1,000 and $ 1,400, something that seems not to happen. The dollar in flotation is maintained between $ 1,170 and $ 1,200. And by June 30 the government should have bought about US $ 2,000 million, according to the commitment agreed with the IMF.
One of the main objectors to Caputo’s ideas about endogenous dollarization It is his former vice minister Joaquin Cotani, A man related to former Minister Domingo Cavallo. In a text last year, Cotani warned that the idea of the owner of the economic portfolio “is not a relief for investors or the government, because dollarizing the internal public debt that is today wemplified in a country without international reservations increases the risk of default.”
Source: Ambito
