“I am in favor of closing the BCRA, but first I have to clean it up and that is what we are doing”he completed in a radio interview.
“We are going to remove the stocks when we finish cleaning up the Central Bank and the entire monetary issue, and when we finish cleaning up the problem of the monetary surplus in the economy. Once we finished those two things, we are going to remove the stocks“he added.
In his radio statements, the libertarian condemned the modality of the stocks and it expanded on the problem it generates within the economy: “The stocks generate excess demand in the foreign exchange market, which has as its counterpart an excess supply in the rest of the economy. This implies that the price of the bonds are low and therefore the interest rate jumps and it implies that you have an excess of supply in the goods market and activity falls, for some reason we have a GDP per capita that is 15% lower than what we had in 2011”.
“This generates a drop in the demand for labor, which under normal conditions would generate unemployment, but in Argentina salaries are very low. The unemployment rate is low because salaries are basically miserable. A third of workers today are poor, work is not a mechanism that takes you out of poverty. In this context, removing the stocks is a mechanism that will allow economic activity to rebound, but We cannot open the stocks until the conditions are in place to be able to withstand an abrupt portfolio change.“he added in relation to the possibility of eliminating exchange regulation of foreign currencies.
Blue dollar: it is no longer illegal to buy in “caves”
When asked about the possibility of purchasing “200 dollars”Milei noted: “Today on the free market You will be able to buy all the dollars you want and no one will chase you. You go and buy what you want. Now you can agree to contracts in foreign currencies and they have to be fulfilled that way. Do you realize the shock of freedom that all this implies?”.
Javier Milei informally announced the end of the illegality of the blue dollar, an activity that today, due to current regulations, is punishable by law. However, from the Government No official modification or repeal of the Criminal Exchange Regime was announced.so Milei’s statements point to “do not chase” to those who operate in the black market of foreign currency.
On paper, the National Foreign Exchange Criminal Regime Law will remain in force. The system of sanctions for those who operate in the parallel dollar establishes the illegality of all exchange negotiations that are carried out without the intervention of an authorized institution, such as banks or exchange houses.
Javier Milei Carolina Piparo Dollar
Photo: AGP.
Blue dollar: what freedom in the black market could mean
Emilio Cornejo Costascriminal lawyer, analyzed in dialogue with Ámbito the possible legal consequences that could be implied by the liberation of the black currency market and the removal of the illegal nature of the commercialization of the parallel dollar: “I understand that It will be legal to buy dollars, as long as they are authorized entities. I also believe that it will be legal to buy dollars between parties, which is a bit what Milei’s concept points out: between private parties absolutely anything is worth. Absolute freedom to hire”.
“What I highly doubt is that one can dedicate themselves to selling and buying dollars without being authorized. That is to say, I cannot put up a cave without having authorization from some organization. One thing is freedom among private individuals and another thing is to dedicate myself and set up a financial institution without authorization and without any type of control to buy and sell dollars.”he added.
Source: Ambito
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