Vladimir Werning, The vice president of the Central Bank is One of the few officials of the economic staff that departs from the book of blaming the opposition of all evils that is supporting the market for those weeks.
Recognized that a part of financial instability is due to the complicated processand “transition” from an exchange anchor for inflation towards a scheme of monetary aggregates, That is, a system where the BCRA is responsible for controlling the amount of money in the economy.
This was indicated in the framework of the annual meeting of the Argentine Institute of Finance Executives (IAEF) which is carried out in Bariloche.
Wernig said the program Economic has had “two shocks, one macro, which are the elections, and another that is more micro, which is an arduous process of development of secondary liquidity markets.”
The official referred to that, When the Lefis took out, the banks did not have a replacement market where to go to place the surpluses of daily weights or to take, in case it lacked. The professional explained the details after a question from the public attending the Llao Llao hotel, interested in the high level that rates reached in recent weeks.
Unlike José Luis Daza, the Deputy Minister of Economy, who blamed the instability to the opposition and failure of the Government of Mauricio Macri, in this case Werning did not escape to recognize that there were problems when it was decided to go to a new scheme for inflation control.
The rates have to determine the market
He said that when aggregate control is made “to be consistent and rates cannot be determined by the Central Bank but by the market.” However, he clarified that “That one day to the other is not achieved.”
“What we see is that Both electoral shock and its impact on rates and microeconomic shock of the transition to a scheme of monetary aggregates are temporary. They are things that will be overcome, ”he anticipated.
In that sense, Werning held the banks. He recalled that a month before the Lefi stopped emitting with which the banks handled their daily liquidity, they were suggested that they be reducing their positions in Lefi to “an orderly transition without shocks. ”
“Unfortunately the banks during that month of transition that we offered them instead of reducing the placements in LefisThey doubled them, “he revealed and that is why he said that” the transition became double larger. “
“Term All being sudden. In an economy in which we are fighting inflation, in which we want to control the aggregates, that excess of liquidity had to be absorbed, ”said the official who admitted “lSubsequent absorption brought up the rates. ”
Trying to build a secondary money market
To solve the problem of the lack of a market to which banks can go to lend or take money in the very short term, The official anticipated that “there are micro measures to eliminate regulatory distortions that they will improve the predictability and intradiary liquidity. “
“It is not only the liquidity of a day, but the intradiary liquidity and the instability that hAbía in a system that sought to protect against high inflation had reduced contracts to the minimum level What led banks to pay exorbitant rates, “he added.
Werning said that “these issues are addressing them and we will contribute to be a major feeling Intradiary anchor stability for banks and that the pricing of interest rates is more rational. “
Source: Ambito
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