“We intend to continue to maintain the range of fluctuations between the bands,” Economy Minister Luis Caputo said this Wednesday, November 12, at the FIEl annual conference held at the Buenos Aires Stock Exchange. Caputo was in charge of closing the conference, which was attended by several speakers, including former Economy Minister Domingo Cavallo.
Among other issues, Mr. Caputo insisted that the exchange rate regime would be maintained. “first of all, Because the band is properly adjusted. ”we believe in everything“It’s not that time yet.” – to take them out – and commented:“Argentina is a country with weak and fragile financing needs, which is unusual for any country.”he declared. He even pointed out that “market fundamentals can’t explain it either.”
Although the private sector needs to improve its competitiveness, it has adjusted the value of $1 to $1,500.
Why does that happen? asked the Minister. “because Any shock has a big impact on money demand in Argentina. “If there is no stability and trust in the country, there is no escape from it,” the minister added.
Among other issues, Caputo commented: “The ceiling of the band is very well tuned. Today, Argentina does not have a competitive exchange rate problem and virtually does not need to worry about it. For fans of historical dramas, we refer to (Mauricio) Macri’s withdrawal from stocks, when at that time no one questioned whether our currency was overvalued, but today’s exchange rate is 1270 pesos and that On top of that, Macri at the time had a budget deficit of 6 percentage points and a current account deficit of 3 percentage points, which we don’t have,” Caputo said, adding, “Some might think that we can afford to make certain changes.” It’s even lower than that,” he said.
He also pointed out that:You don’t need to be an expert in economics to understand that it’s difficult to export record amounts when a currency is overvalued. And now we have a track record of exporting almost everything, including the knowledge economy, services, and goods. Obviously the band is properly adjusted“, quarrel.
Additionally, the Treasurer highlighted the speech he gave yesterday to insurance professionals at the CIDES annual event.
“We are at a turning point in history,” Minister Luis Caputo said in his presentation. In addition to the decision to maintain the macroeconomic order, social support is also combined. “The people voted to follow the macro order, to leave an era of currency devaluation and default. They said the road could be tough. After 20 months of trying this new path of legitimacy and freedom, they voted to We decided to follow the path. Added to this is the third axis of governance ability. We are going to have another parliament, and any reforms we put forward will be much more acceptable and easier to pass than the current one.” ”
“We have a unique opportunity. After 120 years, we are on the eve of history changing,” the Treasury Secretary said.
“Our country succeeded in reducing the deficit by five percentage points in one month. We have now been in surplus for more than 20 months, and no one disputes that the surplus will remain as it is.”
“Inflation has gone from 1.5 percentage points per day to 2 points per month. We are very confident that by doing our homework, we will bring global inflation under control next year.”
under development…
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