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The three conditions for getting out of the dollar trap, according to Fausto Spotorno

The three conditions for getting out of the dollar trap, according to Fausto Spotorno
The three conditions for getting out of the dollar trap, according to Fausto Spotorno

One of the most followed economists in the city of Buenos Aires, and one of those who has the most dialogue with President Javier Milei, analyzed the new exchange rate regime.

Fausto Spotorno He is one of the most followed economists in the city of Buenos Aires, and one of those who has the most dialogue with the president. Javier Milei. In an interview he analyzed the possibilities of the Government lifting the exchange ratewhich as confirmed by the Minister of Economy, Luis Caputo, It will be in a “third stage” – the second begins this Monday with the new monetary regime – and for which “there is no date.”

“The economic program aims to issue zero. Eliminate any need to issue for fiscal or quasi-fiscal reasons. Likewise, they are not going to issue zero as the president said, he was not going to allow monetary policy to be so restrictive that it impedes economic activity,” Spotorno explained.

In this regard, he said that “What the president (Javier Milei) implied is that when we reach the point where the Central Bank no longer needs to issue more pesos to be able to function, we will be in a position to get out of the trap.”

“The exit from the stocks has to be before 2025, transferring the debt from the BCRA to the Treasury could not last more than 4 months (…) To get out of the currency trap, the government, in addition to not issuing more pesos, has to accumulate reserves and close the exchange rate gap.he evaluated.

He added that “when more reserves are accumulated by September, the gap will begin to narrow and then we will be in a position to break free from the restrictions.”

“What everyone is asking for is to get out of the trap, there is anxiety, but because there are a lot of businesses that depend on that,” he said in the interview he gave to Milenium radio.

Source: Ambito

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