The Finance Minister spoke about the removal of restrictions on the foreign exchange market and assured that there is no “specific date.” However, he provided some additional information on the conditions necessary for this to happen.
The Secretary of the Treasury, Carlos Guberman explained more precisely the 2025 Budget numbers presented by President Javier Milei in Congress. The official gave signals about the end of the exchange rate restrictions and spoke about the Ministry of Economy’s forecasts regarding the official dollar and inflation.
Asked in an interview about the removal of restrictions to access the foreign exchange market, the Secretary of Finance said a priori: “We will get out of the restrictions when the conditions are met to do so.” “The budget expectation is that it will not be maintained throughout 2025,” Guberman revealed. Beyond the definition, he clarified that there is no “specific date” for the exit and that it will depend “on certain conditions being met.”
He also gave an advance of the predictions made by the Treasury Palace regarding inflation and the value of the dollar: inflation of the order of 18.3% annually and a value for the official US currency of $1,207. “We want the economy to start working as quickly as possible,” he said in an interview with LN+.
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The RIGI and the governors
Later, he emphasized one of the central points of the Head of State’s speech at the Legislative Palace: the request for additional adjustment to the provinces of US$60,000 million. “When the 17 governors and the head of the City Government (Jorge Macri) signed the May Pact, the second point of the document spoke of fiscal balance for all. And the fifth or sixth point also mentioned a consolidated expenditure of 25 points of GDP.”he said in defense of what was proposed by the leader of La Libertad Avanza in the presence of legislators and officials.
He added: “The Government will be responsible for social assistance, paying pensions, national security and defence, and maintaining the judiciary in the best possible way. The provinces must take care of the rest of the functions.”
In another part of the interview, he referred to the arrival of investments in the country and specified that they expect a 10% increase.We believe that the effect of the Large Investment Incentive Regime (RIGI) will begin to work and investments will be mobilized. That was one of our ideas regarding money laundering, which meant that dollars could enter the formal system and be used for financial sector items such as construction,” explained Guberman.
At the level of recovery of BCRA reserves, he also highlighted that the Budget seeks to grant “certainty” to keep them at a high level.
What is the projection for the dollar?
Guberman also placed special emphasis on the value of the official dollar that they expect for 2025. He stated that they will try to keep it at $1.207 He added: “For us, the real exchange rate with which the administration started was very high. What we are proposing for next year is that the real exchange rate remains the same. There is no ‘crawling peg’ or anything explicitly designed to maintain it. The idea is that the market will keep the nominal exchange rate tied to inflation.”.
Finally, in the event of a possible rejection of the project in Congress, he stated: “If the 2025 Budget is not approved, we will continue forward.”
Source: Ambito
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