The director of the IMF, Kristalina Georgieva, had pointed out that Argentines retain more than US $ 200,000 million outside the financial system, “under the mattress and God knows where.” In this sense, the Government prepares an incentive package so that the stored currencies begin to circulate in the formal economy. Luis Caputo said that in the Next two weeks there will be an advertisement to promote the use of dollars, both in daily operations and in the financial system. Among the options under study are:
The intention is to consolidate a currency competence scheme that allows the remumination in pesos and dollars at the same time. The Treasury would continue to absorb weights by placing bonds to keep the money supply low. But how will it impact the dollar?
The impact on the dollar of the new measures
Stimulating the use of the dollar in daily transactions, a greater offer of dollars in the economy is sought that will end up relieving the pressure on the exchange rate, at times where the exchange gap is almost close to zero. That is, in this way, it is contained that the exchange rate does not have sudden jumps.
“We are in a currency competition process. The challenge is to monetize the economy more, which today is at historically low levels,” said the minister. The official strategy points to Increase system liquidityregardless of whether that liquidity is expressed in pesos or in dollars.
In addition, Caputo explained that part of the resources from the Bopreal —The dollar bonus placed by the government to capture import currencies – will be used to strengthen reservations or eventually for Cancel debt in pesos if banks do not refine maturity. This suggests that There will be more dollars available in the formal circuit.
According to the latest monthly report of the Central Bank, 1.7 million operations in dollars for a total of USD 2,579 million were carried out, with an average of US $ 1,515 per transaction.
In spite of that figure, the volume in foreign currency still represents only 0.3% of the total payments made in the system, which shows that the use of currencies in daily transactions remains very limited.
Source: Ambito
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