The minister also pointed out again that it is a myth that the country does not grow without removing the stocks, “it is not true. In 2025, Argentina will grow at 5% or more,” he assured. And he said that the date on which it is lifted makes no difference to investors, “if the stocks are eliminated in April, June or October it does not matter.”
The Minister of Economy, Luis Caputo, addressed several key topics in a recent interview, including a new agreement with the International Monetary Fund (IMF), the impact of the end of the PAIS Tax on the card dollar and plans to lift the cexchange rate in 2025. Although he did not specify an exact date for the end of the exchange restrictions, the head of the Treasury reaffirmed that the measure will be implemented next year, depending on economic conditions.
The minister explained that structural problems still persist, such as negative net reserves, despite recent foreign currency purchases. “When the conditions are met, we will release it: It will be in 2025 without a doubt“, he assured, although he minimized the importance of determining a precise date. “The dollar is at the same level as the official one, there is no gap. Furthermore, the myth that the country does not grow without removing the stocks is not true.. In 2025, Argentina will grow at 5% or more“.
Caputo also argued that international investors are not conditioned by the exact date of the lifting of the stocks, but by macroeconomic stability. “For those who invest for 20 years, if the stocks are eliminated in April, June or October, it makes no difference“he said in an interview with TN.
And he added: “The good thing is that the current numbers confirm that we are on the right path. Today inflation is falling, having reconstituted relative prices. We achieved that brutal drop without breaking contracts or resorting to a Bonex plan. Meanwhile, the economy is recovers, according to JP Morgan,” Caputo said.
Caputo assured that the country “is already in currency competition”
Furthermore, he highlighted Argentina “is already in currency competition” because “it can now be invoiced in dollars.” “When the president talks about endogenous dollarization, he means that the economy needs to be remonetizedboth in pesos and in dollars”.
Along these lines, he celebrated “the normalization of macroeconomics“and noted that “it was done without affecting salaries nor economic activity”.
“The salary is beating inflation, October is probably the seventh month in which salaries beat inflation,” he said.
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As for the inflation, highlighted the drop in wholesale prices 1.2% levels and said that they are at levels that “a year ago were unthinkable. For next year the rates already validate the inflation that we have in the Budget.”
He acknowledged that “the middle class is fighting it” although he rescued: “lor good thing is that the numbers we are seeing are the right way to go.with downward inflation, having reconstituted rates, food, fuel, and without breaking contracts or plans Bonex”.
In relation to the end of the PAIS Tax, the minister confirmed that the dollar card will reduce its price as new perceptions are not applied. “It’s going to go down,” he stated, and detailed that users can pay their consumption in pesos with the card dollar, currently $1,600, or in dollars purchased on the free market, at a value of $1,100. “The majority opt for the second option. This does not affect the Central Bank’s reserves, because those dollars are purchased from private parties,” he concluded.
Source: Ambito
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