The economist Rodolfo Santángelo got into the debate for the exchange rate between the peso and the dollaron whether or not he is behind, and although he lowered his tone for now, he warned about the Crawling Peg cut at 1%.
On the value of the dollar, the economist mentioned that “there is no situation of rude exchange delay,” although “we are at the limit of tolerable.”
“I think the exchange rate against inflation has fallen from what always falls into stabilization plans. He had started with a mattress and lost the mattress. Losing the matt“He warned in an interview on Net TV.
New “Crawling Peg” rate
The government cut the “Crawling PEG” rate from 2% to 1%. Regarding this measure, Santangelo He considered that he “hastened” because the monthly devaluation rate would have to go in line with inflation. Therefore, he considered that “there may still be a few months where it continues to deteriorate (the official exchange rate).”
“I don’t see it as a very serious and irreversible situation, but it is a call for attention without a doubt.”catapulted.
This situation is added a more strengthened dollar in the world after the arrival of Donald Trump in the White House; a real one that stopped devaluingalthough it continues low, and The prices of our cheap export products. “Then, having the dollar low when the real in the world is weak and our prices are low, it is a problem,” he advised.
“Today the important thing is that irreversible thresholds are not cross. I think we are not in that situation yet, but I would say that it is not an issue to take it lightly, “he said.
Punctually, Santangelo suggested that the main future problem for Argentina will be that one day it will need to “have an exchange rate that is determined by the market” and explained the reasons.
“Probably, it has to be somewhat superior to today. And experience tells us that it is very difficult to face those situations without a turbulence in the middle,” he said.
In that scenario, he observed that the main challenge for the government is “to be able to look like Brazil, Chile, Colombia, where the exchange rate is determined by the market, which is higher than today and that goes unnoticed.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
