The renowned economist and former director of Banco Nación, was interviewed and explained why Argentina is expensive in dollars.
The economist Carlos Melconian He expressed concern about government exchange policy and the possible risks involved in the strategy of maintaining the Devaluation of the official exchange rate in 1% monthly as an anchor against inflation.
It should be remembered that the Executive’s expectation is that the reduction of the official dollar adjustment rhythm, from 2% to 1% monthly since February, contributes to decelerate inflation below 2% monthly.
However, Melconian warned that this strategy, used to contain the price rise, has limits. “At some point she suffocates you,” he said in an interview with Radio La Red. He explained that the government began with a strong adjustment of the exchange rate, taking it to 800 pesos, but over time, The real value adjusted by inflation would be around 1,500 pesos, while the current price is approximately 1,050 pesos. “It is not a exchange delay, but the initial mattress was eroding. That is why Argentina is expensive in dollars“He analyzed.
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What Carlos Melconian said about dollarization
Regarding the president’s intention Javier Milei to move towards a dollarization, Melconian again used his well -known metaphor for “Tuco noodles.” “Instead, what will come is an end of perita tomato that you cannot open,” he ironized.
For the economist, “If Argentina had to dollarize, it would be because Milei has failed. “ Instead, he said that if the local currency manages to consolidate, it will be a sign of success of its economic program. “In these months, currency has been issued, but for a virtuous event, not by fiscal deficit. The Central Bank buys dollars and issues pesos, the banking system grants credits and provides deposits, but There was a previous broadcast that responds to a healthy dynamic“He explained.
He concluded that “currency emission and weight acceptability can be part of a virtuous and not vicious mechanism.” Therefore, he said that “While the president does not manage to dollarize, it will be because his program is working. “
Source: Ambito
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