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The dollar for the floor, prices through the roof and a bathroom of reality by Martín Guzmán

2021-04-07T00:19:30.087Z


The government's intention to delay the price of the dollar is consolidated. But in March it was not enough to curb inflation.


04/06/2021 18:22

  • Clarín.com

  • Economy

Updated 04/06/2021 20:33

The Central Bank is experiencing a spring when it comes to buying

dollars

.

Those corresponding to March surpassed

US $ 2 billion

and in the next 20 days it expects a higher level as a ton of

soybeans

remains above US $ 500 in the international market.

From the end of April to the end of May, Miguel Pesce

It should be done with an important part of the

US $ 8,500 million

that it is estimated that agriculture could liquidate this season.

Miguel Pesce, head of the BCRA.

Photo: Federico López Claro

Already on account of those dollars was that Minister

Martín Guzmán

announced the de-indexation of

the official dollar

(today at $ 92.30 and at the end of the year at $ 102.4, that is, it will only rise 11% until December) in an attempt to

stop somewhat the rise in prices

, especially food.

The photo left in March was bad at the start of the experience of slowing down the

march of the dollar to contain inflation

: the wholesale dollar rose only 1.1% while

the increase in the cost of living

, according to private consultants, would have exceeded 4 %

.

While the government significantly reduced the rate of increase in the exchange rate (the previous month it had risen 2.6%),

inflation

would have been higher than the 3.6% in February.

The rises associated with the beginning of classes (schools, supplies, clothing, etc.) and food were the engines of what would be another

bad mark

in terms of fighting

inflation.

The government is analyzing measures such as expanding the list of

maximum prices

 and increasing marketing channels as a means to improve the supply of products, but

the basis of the strategy continues to be supported by delaying the dollar.

In the official ideology, whose main

objective is to

win the legislative elections at the end of the year, Argentine inflation is

roughly

determined

by 60% by the evolution of the dollar and 40% by the result of the

parity elections

.

In other words,

the main dispute revolves around whether the dollar beats wages or vice versa.

The government has already defined the lifeline for that race and made clear its desire for

the dollar to lose against inflation

and rising

wages

.

A classic in the race between variables for electoral years.

But the evolution of the pandemic, the lack of vaccines and the desire of some officials to return to confinement situations can change everything and this is how Guzmán would have understood it when he said: "

Today the economy could not withstand a strict closure of activity

.

"

Health and the economy


The dilemma between health and the economy that President

Alberto Fernández

raised

last year at the start of the pandemic seems to have been overcome.

The impoverishment shock that the 2020 quarantine generated

is indelible for Argentines

and there are also doubts about the authority of officials to apply

strict confinement measures.

The first cry was given by Guzmán in a report with

CNN en Español

that showed a minister opening himself up to the harshest Kirchnerist positions regarding negotiations with the International Monetary Fund.

Alberto Fernández and Martín Guzmán.

Endorsing the statements of

Cristina Kirchner

that Argentina does not have dollars to pay the IMF the US $ 44,000 million that expire in 2022 and 2023,

the minister distanced himself from the vice

-

presidential claim

of asking the body for 20 years to pay the debt.

The vice president called for the formalization of an agreement with the opposition

to extend the debt payment terms and Guzmán ratified that the maximum term established by the Fund for its extended facility loans is 10 years and that this does not change overnight. the morning.

The minister explained that to extend the term of the debt by 10 years would require the support of

USA, China, Germany, Japan and France

and assured that achieving a change in the statutes of an international body such as the IMF could take years and Argentina, a country with cut credit, has to solve immediate problems.

Guzmán meets with the IMF


Next week

Guzmán will travel to Europe

and his relatives say, verbatim, that he will seek "to build understandings about what Argentina needs to stabilize its economy."

Will try to get a

forgiveness for the debt with the Paris Club (US $ 2.4 billion due in May and there are 60 days to pay it) and will meet with the head of the IMF, Kristalina Georgieva, to discuss a possible agreement after the October elections or November.

Will you raise the 20 term?

Will it carry a specific message from the vice president?

The minister had an

anticipated response

when he returned from his trip to Washington in mid-March: he

went to play paddle tennis

with President Alberto Fernández, a photo was taken and uploaded to twitter.

Some analysts believe it was a message for

La Cámpora

.

Is it so?

It was that photo that inspired market operators to think that Guzmán seeks to distance himself from the

Kirchnerist parade against the IMF

in the days prior to the definition of a capital increase of the organization that could represent for Argentina the income of

US $ 4,355 million

, a very precious figure to lubricate the official strategy to delay the dollar, which became the main pillar to stabilize the short term.

And in a pandemic and with a shortage of vaccines, that is not little.

Source: clarin

All business articles on 2021-04-07

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