The President emphasized that the Government “thinks in terms of freedom” and highlighted: “We have already begun to lift some of the regulations that make up the controls.”
The president Javier Milei He referred again this Wednesday to one of the issues that generates the most tension in financial matters: the lifting of the stocks. However, the president reiterated: “We are not communists, we are libertarians. There is a philosophical question behind this, and that is that I can’t set dates because I don’t think like a central planner. “We think in terms of a regime of freedom.”
In an interview with the British newspaper Financial Timesexplained that the exchange rate was established in the midst of an economic crisis and restricts dollar purchases for both individuals and companies with the aim of stopping capital flight and protecting international reserves.
The Minister of Economy also participated in the interview, Luis Caputowho agreed: “It seems childish to focus on whether these controls end in two, three, five or eight months. That doesn’t matter. Every time we go abroad, we always see investors in the real economy and, honestly, no one asks about exchange controls.”
In this regard, the Financial Times analyzed that the President’s decision was to stabilize the economy through shock measures, such as fiscal adjustment and reduction of the public deficit, with the objective of lowering inflation from the peak of 26% in December 2023 to 4.2% in August.
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Javier Milei listed the conditions to lift the stocks
During the exchange, Milei He announced that the main condition for lifting exchange restrictions is that the monthly inflation falls below 2.5%.
Another point he pointed out is that local banks must reduce your exposures to government bonds and use those resources to increase credit to companieswhich would help satisfy the accumulated demand for dollars in the market.
At the same time, he clarified that the lifting of the stocks It is not conditioned by negotiations with the International Monetary Fund (IMF)an organization to which Argentina owes US$43 billion. “We have already begun to lift some of the regulations that make up the controls, and we are doing it on our own”Milei stated.
“We have already begun to lift some of the regulations that make up the controls,” he highlighted and added: “If someone comes and gives us a lot of money, we will open them tomorrow. Now we work like it’s not going to happen… as if they had an extreme aversion to risk,” the president explained.
Along these lines, Caputo analyzed the possibility of starting new negotiations with the International Monetary Fund (IMF) about a loan package with “fresh cash” that allows the Government “increase net reserves and that would help lift controls.”
Source: Ambito
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