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Martín Guzmán said there will be no shock plan and denied a devaluation

2021-08-04T20:50:05.523Z

The minister ratified a dollar at $ 102.40 for December and maintained that his approach is "comprehensive." He also forecast lower inflation in July.



Juan Manuel Barca

08/04/2021 17:29

  • Clarín.com

  • Economy

Updated 08/04/2021 17:29

The Minister of Economy,

Martín Guzmán, ruled out a shock plan to stabilize the economy and a devaluation by 

ensuring that there are conditions for the official dollar projected for December at $ 102.40 to reach that range by the end of the year.

"In Argentina progress has been made in exchange rate stabilization," he said, and assured: "

We see stabilization as a path that requires a comprehensive approach, not an approach that is only exchange rate stabilization

," the official said Wednesday.

In this way, he rejected a sharp jump in the exchange rate.

Last week, several economists consulted by Clarín assured that it was necessary to apply a plan similar to Ricardo Alfonsín's Austral to stabilize the economy and lower inflation, which today is around 50% year-on-year. 


"What the exchange policy scheme establishes is that the rate of evolution of the exchange rate be maintained, which seeks to converge

an average exchange rate for the month of December of $ 102.40. Today we have the conditions for this scheme to be effectively consistent

from the macroeconomic point of view, "said Guzmán.

The head of the Treasury made these statements at the end of the meeting of the economic cabinet on Wednesday in which the 2022 Budget that will be presented on September 15 to Congress was analyzed and that contains this exchange guideline until the end of the current year, among others key variables.

The Government seeks to calm devaluation expectations in a context of exchange rate pressures and uncertainty, even among economists close to the ruling party.

This Wednesday, the former Deputy Minister of Economy Emmanuel Álvarez Agis warned that

 if there is no solution to the devaluation of the peso and inflation "

we are going to use the $ 1000 bills to wallpaper walls

."

After the restrictions on financial dollars and the jump of the blue dollar in July,

the informal dollar remained this Wednesday at $ 180 for the third consecutive day, which represents a gap with the official of 85%

.

Last week, the Central Bank intervened with US $ 310 million in the official market to contain demand and not validate a major devaluation.

Attentive to the evolution of the exchange rate, Guzmán pointed out that "

we are working on solving the problems of a shortage of dollars that were generated in Argentina

during what was the administration that preceded us."

And he highlighted the agreement with the private bondholders, the "time bridge" with the Paris Club and the negotiations with the IMF.

The Secretary of Economic Policy, Fernando Morra, and the Deputy General Manager of Economic Research of the Central Bank, German Feldman,

met last week with IMF officials in Washington

to analyze inflation, collection and spending projections, official sources confirmed.

Regarding inflation, the Minister of Economy anticipated that the July data will be lower than the 3.2% registered in June.

"We have stated that inflation in March was going to reach a peak and from there a reduction was going to be observed and that is actually happening. We

also hope that in July it will be lower than that of June and continue that path,

" he said.

Look also

The blue dollar remains at $ 180 and the gap remains at 85%

Álvarez Agis: "If we continue like this we will end up using the $ 1000 bills to wallpaper walls"

Source: clarin

All business articles on 2021-08-04

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