The director of the Central Bank and advisor to the Ministry of Economy, Federico Furiase, explained how the new exchange flotation scheme implemented by the Government works.
He Central Bank Director and advisor to the Ministry of Economy, Federico Furiasesaid the new regime was designed for the exchange rate It is located closer to Exchange band floor than from the roof. The official explained that this situation is based on what he called a “macroeconomic equation” that combines greater supply offer and less pesos in circulation.
As for macroeconomic variables, he said that these also contribute to maintaining the current exchange rate: Primary fiscal surplus, absence of monetary issuance, strong seasonal income from agro exports and new financial instruments that allow absorbing pesos of the system, such as BOPREALES.
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In that sense, he indicated that the Primary surplus of the state withdrawal from A monthly billionin parallel with the seasonality of the agricultural harvestwhich will contribute additional income of dollars until the end of June, also influenced by the expiration of the temporal decline of Export withholdingsin force until July, that It could accelerate the liquidations of the agricultural sector.
Furiase also mentioned that The Government foresees a capital income from non -resident investorswhich would reinforce the offer of dollars in the market and push the exchange rate towards the lower end of the band.
What situations will the BCRA issue?
As for the broadcast, he said that it only happens when The exchange rate reaches the band’s floor or when the treasure fails to refinance 100% of its maturities. In the latter case, what the economic team calls “is activated”Anker point”, In reference to the consultant founded by Caputo.
At the moment he assured that the system is in a monetary regime contractive and that the demand for credit grows strongly, and that banks require greater liquidity to meet it, which Limit the treasure capacity to renew maturities without validating high rates.
In that sense, he gave a key clarification about the intention of taking the band to the band before adding reservations: “The purchase of dollars can occur in the middle of the band when the treasure cannot roll 100%.”
In addition, he assured that the exchange rate flotation within the band It allows to maintain the Monetary Base constant, which contributes to anchoring inflation expectations. In that framework, he reiterated that the short -term objective It is to reduce the Price variation monthly, which in March would have reached the 3%.
Source: Ambito
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