The Minister of Economy, Luis Caputoand the president of the Central Bank (BCRA) Santiago BausilI gave more details of the measures that the monetary entity announced on the previous day and that include the end of the Lefis, and various strategies for the accumulation of reserves such as A new repo and debt placements. Within the ads it was also reported that it will be made A repurchase of sales options (puts) on treasure titles held by banks.
“In the course of the next 6 weeks, different elements will be carried out that made sense to communicate it in an integral way. We separate them into two categories: what has to do with pesos and what has to do with dollars. With respect to pesos, today a repurchase is being carried out via market of the puts that remain remaining in the market, “said Bausil. In this regard, he said they are in total 4.5 billion pesos of American puts and 1.3 of European puts that will offer banks the opportunity to sell these instruments to BCRA again.
Regarding the decision of Do not renew the Lefis, The president of the BCRA said that this happens within the framework of the “Elimination of the monetary policy rate” And that from now on, The only variable that we control is the amount of money in a scheme with controlled emission.
Santiago Bausili also pointed out that he persists A distortion in the financial system due to differentiated lace applied to the deposits of common investment funds (FCI). Currently, these deposits have a lace of 20%, lower than other economic agents, which allows banks to offer higher interest rates to FCI in remunerated current accounts.
Bausili explained that this situation generates an incentive for the funds of the participants to flow through the FCI to the banking system, adding an intermediation layer that implies additional costs. In addition, he warned that this practice introduces High volatility in the sources of funding of banks, affecting the stability of the financial system.
Accumulation of reservations: what Caputo said
The Minister of Economy said that the accumulation of reservations is a natural consequence of the correct functioning of the economic program. Compared this process with the evolution of inflation, noting that, like the latter, The accumulation of reserves will depend on the decisions of the economic agents.
“If economic agents decide to invest or sell dollars, it is because the economic program works well. If that happens next month or the other, it is not essentially the most important thing”Caputo explained, highlighting that the fundamental thing is the solidity of the program and its impact on the real economy.
“We constantly talk to the fund (monetary) and they are very happy with how the program works. It is a goal (the reservation) that we propose to fulfill”Luis “Toto” Caputo added, and expanded: “The issue of the accumulation of reserves does not have the level of importance that had a few months ago, since today we are with a floating exchange rate and a capitalized central bank. Both the downward inflation and the accumulation of reserves are two obvious consequences that will be given“, said.
Caputo also remarked that There are multiple ways to accumulate reservations. One of the most prominent is Through the National Treasury, using the weights from the fiscal surplus to buy dollars without the need to issue currency. “Far from having a deficit, the treasure has surplus, a surplus that more or less is around billion pesos per month,” he explained. In this way, the tax authority can intervene in the exchange market without generating inflationary pressure.
These statements happen within the framework of Monday’s ads where the BCRA launched A battery of measures among which are the confirmation of New repo (short -term loan) with financial entities, and the launch of monthly bond bonds in dollars, for both resident investors, and foreigners, in the latter case without the minimum permanence of six months.
With the central idea of sanitizing the BCRA, and continuing with inflation disinflation, the authority convened a second tender for its resting program with international banks through a Additional broadcast of up to US $ 2,000 million scheduled for next Wednesday, June 11. Recall that last January, a first repo had been completed with banks for US $ 1 billion.
It was also announced that it will be incorporated into the public title tenders schedule by 2025, the modality of direct subscription in dollars. This option will be available from this month for collection with deadlines exceeding one year, with a monthly limit of US $ 1 billion. “The possibility of eventually can enter, in different tenders, so it is titles for more than a year, which can be subscribed in dollars, will eventually enter. That is another way of accumulating reservations“Caputo explained this time.
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Caputo and Daza talk about the “most orderly” macro and growth?
José Luis DazaVice Minister of Economy, he said: “When I look at the macro policy structure, There is no country in the world that has the most orderly macroeconomy of what Argentina has today. And have a reform program with a clearer sequence than Argentina has today. There is no in the continent, nor do I see it in Europe. And one more thing: Toto is said we will privatize, we will sell assets. It is all part of a program that has been executed by step and that I think There has been no awareness of the enormous growth potential that Argentina has in this context.
For its part, Luis Caputocontributed: “To the extent that the private sector understands this change of model and commits to this change, the faster the country will grow and it will allow us to lower taxes. All our policies go in tune, even the recent arca ads, to lower the Argentine cost via less taxes and less regulations. “
“We had agreed (with the IMF) a 1.3% surplusehe said in the ‘streaming’ Daza, along with Caputo and the president of the BCRA, Santiago Bausilli. “The agreement with the fund included access to international markets next year. Given the way in which the economic program is being executed and evolving, we saw that there was a possibility of reacting to international markets Before we had scheduled with the background. This was a very important topic for the IMF, “he added
Source: Ambito
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