End to the stocks? What do the candidates propose to lift it?

Facing the electoral contest on October 22two of the presidential candidates, the libertarian Javier Milei and for Together for Change, Patricia Bullrich, have promised to put an end to the complexity of the various exchange rates that coexist in the country.

For its part, Sergio Massacandidate of Unión por la Patria, has not made many mentions regarding the exchange ratea measure that began in 2011 during the mandate of Cristina Fernández de Kirchnerwas applied again in 2019 under the administration of Mauricio Macri (Let’s change); and later, it worsened during the current administration of Alberto Fernandez.

Exchange stocks: the proposal of each candidate for October 22

Massa, from his role in the Ministry of Economy, has not made reference to the stocks in his speeches. In fact, quite the opposite, The Tigrense tightened the trap even moreexcluding those who receive utility rate subsidies and those who had invested in different forms of dollars.

Recently, they imposed new restrictions on access to financial dollarsaffecting importers and adjusting deadlines for regular buyers and sellers, as well as the Cedears operationan instrument widely used by investors in times of uncertainty, as well as conditions for the purchase of the so-called stock market dollar or MEP.

Exchange stocks: Patricia Bullrich’s proposal

For its part, Patricia Bullrich, candidate for Together for Change, reiterated her position in favor ofeliminate the trap from the first day of his mandate. It proposes securing dollars internationally to open the stocks as soon as possible and will seek an agreement with the IMF to protect the economy in dollars.

According to Luciano Laspina, Bullrich’s economic advisor, the plan would also include prohibiting by law the installation of a new trap. According to the national deputy, Bullrich’s economic plan is based on three axes: the strategy to get out of the trap; the reduction of fiscal deficitespecially through a cut public spendingwhich, as he noted, “doubled in terms of GDP during the 20 years of Kirchnerism” and the readjustment of relative prices.

So, Laspina assured that, once the stage of eliminating the “capital control“, the stocks will be banned by law.

Javier Milei and the elimination of the Central Bank

On the other hand, the presidential candidate of Freedom AdvancesJavier Milei, proposes to immediately release all exchange stocks and advocates ending the Central Bank to eliminate the stocks.

Likewise, Milei promised to eliminate the local currency and replace it with the dollar, despite the fact that different economists warn that this would cause a temporary increase in inflationary dynamics, which already exceeds 130%.

Furthermore, Milei considers the stocks as an immoral measure and suggests that its lifting cannot be abrupt to avoid hyperinflationeventually proposing dollarization as a solution.

Exchange stocks: Domingo Cavallo’s warning

The former Minister of Economy, Sunday Cavallowarned that if the next Government decides to eliminate the stocks exchange quickly without first applying a fiscal adjustment with a cut in monetary emission, the result will be “a hyperinflationary explosion, very costly from a social point of view and devastating from a political point of view.”

The Economist posted on his blog a text titled “The opposition has to be cautious with its promises. In the best of cases, a good stabilization plan will only be able to be implemented at the beginning of 2025.”.

“It may seem paradoxical, but to avoid the inflationary inertia created by the exchange rate, the new government decides to immediately eliminate it for all types of transactions, without there having been time to implement a fiscal adjustment and the economy having digested all the excessive emission previous monetary The result could be a hyperinflationary explosion, extremely costly from a social point of view and devastating from a political point of view.”Cavallo warned.