He Director of the Central Bank, Federico Furiasehe went out to defend the decision of Government to intervene in the change market with the dollars that the Ministry of Economy has deposited in the governing entity of the financial system, And he considered that the instability recorded in the markets is “encapsulated” at the electoral political time.
“The treasure has sufficient ammunition to address liquidity problems in the market”, He said Furiasta in the framework of a talk that he provided for the Association of Life and Retirement Insurers of Argentina (Avira).
The meeting, which took place at the NH hotel, meters from the Plaza de Mayo, It was attended by some 700 entrepreneurs and managers of the insurance sector.
When talking about Treasury’s fire, he said that this office of the Ministry of Economy “He has bought dollars in this new free flotation exchange regime between bands, where the Central Bank does not intervene directly.”
“On the floor, the Central Bank sells pesos; on the roof, buy pesos. But within this concept of free flotation between bands, the Treasury has acquired about US $ 3,000 million: the first US $ 1,500 million through the placement of bonds at an average price of $ 1,130, and the second US $ 1,500 million through block purchases, at an average price of $ 1,250”accurate.
The official insisted that “it isTo ammunition that has the treasure, also in terms of reserves, both in pesos and dollars, is what gives us degrees of freedom, as happened this timely week, in the midst of political noise, when in the change market we saw liquidity problems that do not reflect the usual functioning. ”
“It has passed several times that, with a very small volume of 30 to 40 million dollars, tensions were generated, when the normal volume of the gear market is around US $ 600 million,” explained.
In that sense, Furiase said that the instability of the markets responds to “a political context in which the opposition wants to break the heart of the economic program, which is the fiscal anchor.” However, he clarified that, under the scheme used by the Minister of Economy, Luis Caputo, to stabilize inflation, “macroeconomic foundations are stronger than ever.”
Political noise
Furiase acknowledged that the “LITTLE POLITICAL NOISE” It generated instability in the markets, but considered that “everything is encapsulated in the electoral process.” He said that in October Freedom Avanza will win the legislative elections nationwide and that from there “a stronger congress will arise than the current one, which is going to add to the process of reforms that is coming.” He also indicated that “the disinflation process is more solid than ever.”
By rejecting the recent criticism of the former minister Domingo Cavallo, who accused a few days ago to the Palace of Finance of “Improvisation”, The director of the Central Bank stressed that the government program “It was designed at different stages precisely to have the armored macro in contexts that could be complicated on the political or international side.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
