in a dialogue with Channel E, Eugenia MuzioEconomics journalist Luis Caputo, the economics minister, revisited the main points of his speech at the FIEL Foundation’s annual conference, in which he defended the currency band system and reiterated his plans to strengthen central banks.
Caputo reconfirms replacement band, disputes with former ministers
Eugenia Muzio I explained.The Minister of Economy firmly defended the exchange band system.”, guaranteeing that there will be no change as long as the dollar remains stable within the expected margin.
According to the reporter, Caputo he emphasized.The exchange band has adjusted upper and lower limits, and this is the best exchange rate regime in the Argentine economy at this time.” he revealed.Currency bands will not move today as the dollar remains stable”.
Muzio He contrasted this position with that of other former ministers who attended the meeting, including Domingo Cavallo, Ricardo López Murphy and Nicolas Dujovne.They advocated for exchange rate liberalization and for the government to allow the dollar to float freely.”.
Journalists interpreted Caputo’s message as an attempt to convey stability and predictability to his audience of investors, economists, and businessmen.they went home very satisfiedAfter listening to the Minister.
Reserves, swaps and central bank strengthening strategies
One of the most relevant points of the speech, according to Muziowas Caputo’s explanation of the reserved matters. “He said that the accumulation of foreign exchange reserves is the basis of economic planning, but it will be a function of strengthening the central bank’s balance.“, accurate.
The minister denied that this was an effort to pay maturities or meet targets with the IMF, insisting the objective was to strengthen the central bank’s financial base.
On top of that, Muzio he emphasized.Mr. Caputo talked about financial instruments available to deal with debt, such as swaps with the United States and China.“. especially, “He stressed that swaps with China remain valid and can be used to pay for fiscal commitments.”, dispelling doubts about the possibility of abandoning the Asia Agreement.
He also mentioned the possibility ofIt has received about $20 billion in bank loans from companies such as Morgan Stanley.This will give the government more room for maneuver in fiscal matters.
Inflation and economic direction
Asked if Mr. Caputo had talked about inflation, he said: Muzio ” revealedHe reiterated what he said in an earlier interview: “Next year’s inflation will converge with global inflation.””.
The Minister assured that the objectives will be achieved by maintaining fiscal and monetary discipline. “He said the inflation rate was hovering between 1.5-2.5% per month and that fiscal and monetary efforts would continue to bring global inflation under control.“The journalist added.
But the official avoided mentioning October’s inflation numbers, which are due in the next few hours, and instead focused on medium-term messages and confidence in the economic plan.
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