The Minister of Economy, Luis Caputo, said in an event before entrepreneurs that “people have a lot of dollars and it is not necessary to print them, there are 200 billion dollars in the mattresses (…), why not use those dollars, that will help the economy, to support this level of growth or even raise it.”
In the first place, it is worth asking what “people” refers to, since there are a large majority of Argentines and Argentines who do not have dollars, and even a great proportion whose income is barely enough to eat.
For the small group of those who have dollars “under the mattress”, we must not lose sight of the end of the last stage of the regularization of assets that Congress approved at the time, so it is possible to ask another question: who would enter here in more? Difficult to know.
At present, the government is promoting the “financial bicycle”, which consists of selling dollars in exchange for pesos, then investing those funds in instruments with yields in local currency, and at the expiration buy dollars at a value established in advance in a contract. In fact, in the week significant volumes were operated in the dollar futures market, which is where in particular values of the dollar are set to a certain date and that allows consolidating the profits. A bet without any risk for investors.
While it is not easy to know what is the counterpart of the future contracts, it can be inferred that it is the State, through the Central Bank, which is setting values of the very low future dollars. This “change insurance” would be paid, in one way or another, by the whole of the citizenship.
The damages of government policies only multiply. With the first IMF disbursement the treasure has just canceled, with US $ 12,000 million, non -transferable letters held by the Central Bank. According to the authorities, these resources “contribute to strengthening the balance of the BCRA.” Strictly speaking, it is an accounting seat, used as an excuse to cancel domestic and intra-selector debt (easy to renegotiate), on the other with the background, external and full of conditionalities. In short, an absolutely burdensome operation for the country.
For the remainder of the year, strong payments in foreign currency must be faced. They are $ 4,327 million for global and bonares bonds, US $ 2,477 million to other international organizations that are not the fund, and interest at the latter at US $ 1,655 million.
The financial bridge is vital for a government that asks the IMF: “Let me reach the elections well, lend me the money so that I calm the anxiety that can be in society and that I can continue giving the feeling that everything is going according to the plan. In return, I guarantee that after October we modify the laws that are missing to lower the Argentine cost, and make the necessary changes of the pension system, so that it does not go back.
According to the qualification agencies such as Moody´s, the great challenge for the country is in the sustainability of the external front, and see Vaca Muerta, lithium and copper as the pillars of the long -term strategy.
The natural wealth we have are those that allow us to better understand the reasons for the international financial support received by the government of President Javier Milei.
It is true that there is a potential in our natural wealth. But its exploitation must be done through public management companies or in the association of the public with the private, with laws that preserve the environment, ensuring that a good part of that benefit is reinvested and is in Argentina, and generating work and better living conditions.
If the exploitation of natural resources will be carried out under laws that eliminate most of the necessary controls so that there is no predation, if there will be no obligation to enter the currencies by external sales, or that exports of these resources are carried out with added value (processing them industrially), Argentina loses.
The more votes receive the ruling and the “friendly opposition” in this year’s elections, the closer we will be losing sovereignty and deliver our wealth without any benefit for the population, present and future, of our country.
National Deputy Union for the Homeland. President Solidarity Party
Source: Ambito
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