“To calm this situation, the first thing that is needed is to reach agreements, relaunch the government, make strong decisions and seek to convince people to try to change that dynamic that makes people think minute by minute what is going to happen to the dollar and inflation. That is the main challenge and it is what investors have been looking at since the government took office.”
“The fact that the president and vice president spoke yesterday is clearly much better than that they did not speak, but all the expectations that there were about Sergio Massa, someone who has a lot of ties with investors and with the political establishment, someone has to explain if he continues or else, because all those things create uncertainty. It is impossible for an economy to function with uncertainty. I recognize that there were efforts and that it is positive that Cristina Fernández goes to Olivos, but they have to come out with more, They have to explain more what happened and explain what the economic plan is, what they are going to ask Silvina Batakis for,” added in Russian Roulette.
Agreement with the International Monetary Fund (IMF)
“Today, the agreement with the International Monetary Fund (IMF) is secondary. I believe that the Fund is not in a position to let go of Argentina’s hand and is not going to get involved in an electoral race. Alberto Fernández has to propose something forceful, that is, what kind of economic plan at the local level is he looking for; the IMF is going to accommodate if the plan is moderately reasonable. But the reality is that there is no money to increase consumption, there are no reserves to increase production and there is no financing to maintain this fiscal deficit. So, the president and vice president have to sit down with the economy minister and talk about what level of inflation they are willing to tolerate, how much they want to cut spending or cool down the economy. It is what a Minister of Economy does with her team”.
“Markets have their own dynamics, they operate constantly and must be taken into account. You don’t have to think about the markets to make an economic plan, but you do have to take them into account, and if you take time and don’t make decisions, you’re in a weak situation, that’s what the market interprets”.
“There is a government going through a difficult situation, and that cannot even organize a press conference to communicate the change of ministers in Economy, it has an impact on people’s behavior and on markets. That is why, when there is a crisis, in the countries the population is taken into account and announcements are made that reassure the population. I hope that the president empowers the new economy minister and that she quickly shows a plan because last week the government could hardly be financed.”
Source: Ambito
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