The government released the stocks of the dollar without dogmas or hurry. Pragmatism prevails: release when you can, not when you want.
Several successes of President Javier Milei and his team become Do not try to hurry libertarian recipes on a broken, restricted and intervened economy. The first pragmatism sample was postpone the dollarizing cause and the closure of the Central Bank. The lack of resources and the risks from a giant commercial debt and an overpopulation of weights, among other factors, would have led to failure. It was a pleasant surprise of a president who in the campaign showed a firm fundamentalism for fulfilling its objectives.
Throughout the first year of management, this flexibility was evidenced in the political level in addition to the economic one, but without losing the essence. From the first month The fiscal accounts show surplus and the Treasury has not been financed with monetary issuance. The exchange scheme, meanwhile, seemed to be subject to attending the battle against inflation and supplying an economy with a shortage of ridiculous products and prices. You have to understand the model for what it is, A series of stages where it progresses as circumstances allow it. The success of the model lies in interpreting these circumstances correctly.
It is argued that I could have tried to leave the stock before, but The risk of trying to the market too early could have cost the Government everything he built so far. Argentina lived with even several of its versions for six years, creating sleeping forces of repressed demand for dollars. Nor was it necessary. The country was able to resume the growth path in the second semester of 2024 despite having practically the same controls as in 2023. The vote of confidence of the electorate and, fundamentally, of the market, included the necessary patience so that the libertarian discourse with a more typical intervention of a Keynesian country temporarily coexists.
Dollar: CEPO AND RISK ADMINISTRATION
With the opening of the CEPO, the Risk Administration prevailed. Even with the new IMF program and the support of other multilateral organisms, The restrictions were fully rose to human people, but only partially for legal persons.
Again, the market is not asking for it either. No one understands better than The demand for dollars can alter the exchange order that cost so much to create. Cancellation of commercial debt, treasure and dividends will have to wait. It is the turn of individualsstrategy that even makes sense from the political point of view: It is an electoral year and those who vote are people.
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The stock is the opposite of freedom, it is clear, but it is being released as resources and circumstances allow it. It does not open, it relaxes, how to let go of a beast that was tied six years. The pragmatism of a government defending government that understands that guarantees are more important that ideas is perhaps the reason why this time the plan does work out well.
CEO Max Capital Asset Management
Source: Ambito
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