The warning was made by former head of the International Institute of Finance (IFF), Robin Brooks. Thus, the guru joined other experts who criticized Milei’s official model.
He former chief economist of the International Institute of Finance (IFF)an entity that brings together the main financial entities from around the world, Robin Brooksmade a harsh forecast about the future of the dollar in Argentina. Last Monday, the expert stated: “devaluation is inevitable and inescapable“.
For its part, the Government affirms that the dollar will continue its downward trend and that, consequently, the local currency will become increasingly stronger. At the event in Parque Lezama, held on September 28, Javier Milei assured: “ahere we are to defend the peso“.
The complex forecast of a Wall Street guru on the future of the Dollar
Brooks’ warning is in line with the questions made by some economists about the official government program. In this sense, the IFF member assured: “in real terms, the Argentine peso is the strongest currency in the world since the pandemic, while the Brazilian real, which is right next door, is one of the weakest. This divergence is unsustainable and, obviously, it has to end with another great devaluation of the Argentine peso.
The analysis was published on his official X account where Brooks added: “the gain in competitiveness that was obtained with the December devaluation was totally eroded by high inflation and decision to immediately re-peg the peso to the dollar“.
Regarding this problem, the former head of strategy at Goldman Sachs bank left a worrying forecast: “The only way to solve it is to devalue. It is something inevitable and unavoidable.”
The delay of the exchange rate in Argentina
Brooks He is not the only economist who warns about the problem of the exchange rate delay in Argentina. This is also the case of the director of Eco Go, Marina Dal Poggetto who warned that the ruling party is short US$20,000 to maintain the current exchange rate scheme without modifications in the near future.
Along these lines, and in accordance with what Brooks said, the agency Bloomberg located Argentina in first place in the global competitive ranking among 148 currenciesregistering a real appreciation of 25% against the dollar. However, the latest survey by the aforementioned media showed that various international banks expect a 60% jump in the price of the official dollar between October and June of next year.
dollar pesos
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In recent weeks, the various quotes of the parallel dollar They deepened their downward trend, with gaps with respect to the official one at minimum levels in the last five months. Along these lines, various analysts consider that the trend of the different prices has to do with the consolidation of the fiscal balance – main objective of the Government -, the income of dollars from money laundering and the shortage of pesos in the middle of a period in which the payment of taxes begins.
Source: Ambito
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