The former Argentine director in the agency warned about the consequences of not complying with one of the program’s goals. In addition, it minimized the possibility that the emission to buy dollars ends up deriving an increase in inflation.
The former director for Argentina of the International Monetary Fund (IMF), Héctor Torres, He warned that the country will not comply with the accumulation of reservations, one of the main goals agreed with the body, and questioned the Government for insisting on acquiring currencies through indebtedness. “The IMF wants the government to buy reservations, not to rent them,” he said.
The lawyer specialized in International Economic Law He affirmed that the National Administration is on their way to breach with the goal of the reserves that the agency ordered in the new bilateral agreement, although he clarified that, despite this, “We are surely going to get a waiver, that is, a dispensation” that will come hand in hand “Of a commitment called ‘corrective measures’”
In that line, he said that, given the breach, the Government must explain the reasons to directory and anticipate how they will incorporate more currencies, one of the IMF’s concerns. “You have to tell the board:” We do not comply with this goal, but we are going to do this and this to meet the following goals of accumulation of reservations, “he said.
Torres criticized the position of the Executive not to buy reservations in the change market and instead wanting to get dollars through external indebtedness, which he considered as an unbalanced approach. “Obviously, more than taking loans outside”anticipated and questioned: “Taking credit is renting reservations, it is to take debt to build available reservations. The IMF wants the government to buy reservations, not to rent them.”expressed in statements to the Net TV channel.
Héctor Torres spoke of a “ironed dollar” for the electoral year
In that sense, the lawyer marked a distinction between renting and buying reservations. For Towers, Issue pesos to add dollars in the BCRA Does not contradict the official commitment not to issue. “With this government, the commitment is not to issue spurious. But issuing pesos to buy reservations I don’t think it’s what they had in the head when they said “we will not issue”but it is much better to have a liability in the currency of its own than in one that is not typical ”he differentiated.
In another passage from the interview, he referred to the possibility that the Purchase of dollars derive in inflation. Torres considered that it is not always necessary to absorb the weights issued, as Federico Sturzenegger did in his management at the head of the Central Bank. “It depends on the degree of monetization of the economy, it depends on the degree of demand for weights at this time,” he saidAlthough he admitted that in contexts of inflation goals and free mobility of capital, sterilization was a usual practice.
Torres also pointed out Argentina’s difficulty to sustain a robust commercial surplus at a time of the year that is usually key by the entry of agriculture. “We are in a limit surplus scenario, ”he saidhe added that, under these conditions, the government could be forced to rever its position regarding intervention in the exchange market. “The government has been intervening strong in the futures market […] To encourage what is called Carry Trade, ”he said.
Regarding the government’s position not to buy dollars until the floor of the exchange band touches, Towers He considered that it is a posture that is part of an electoral year. “I am convinced that behind that inflexible position of” we are not going to buy inside the band ” There is the idea of having a very ironed dollar for the month of October, which obviously gives this sense of well -being, that feeling of growth of salaries in dollars, although in real terms it is not necessarily so. And it can be important, it is a political commitment, “he said.
Source: Ambito
