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Martín Redrado: 'Whoever proposes dollarization is asking for a 1000% devaluation'


Highlights: "The process of populism has come to an end," says the president of the Buenos Aires Rotary Club. He calls for the Central Bank to be stripped of its role in financing the economy. The president also calls for an end to the use of public funds to pay for private sector projects. "We need a new generation of workers," he says, "who are prepared to work hard for the benefit of the country, not just for the sake of the money" The president's speech is expected to be delivered at a meeting of theRotary Club of Buenos Aires.

"This process of populism is over," the former central banker said at a luncheon at the Rotary Club of Buenos Aires.

"The process of populism that we have experienced in recent decades has come to an end," said former central banker Martín Redrado, who noted that he affirms this "not because of an optimistic or simply voluntarist vision, but because Argentina ran out of credit. It has no international credit, no domestic credit."

"The only thing we have today is a Central Bank that issues orange papers that nobody wants to have in their pockets. Where the demand for money falls. And that is one of the reasons why we have month by month an inflation that is rising step by step," Redrado said under the watchful eye of a hundred businessmen and women gathered at the weekly meeting of the Rotary Club of Buenos Aires.

In his time at the Central Bank, more than ten years ago, Redrado had been one of the first to notice the intentions of the government, then of Cristina Kirchner, to use the monetary authority as a petty cash for spending. Now, asked about the solvency of the agency, the economist said: "For every dollar that is in the Central Bank today, there are approximately $ 4,000. With which whoever proposes a dollarization, is proposing a devaluation of 1,000%."

The economist, who is part of the team of the pre-candidate of Together for Change, Horacio Rodriguez Larreta, said: "In our opinion, the president on December 10 has to raise the seriousness of the situation in which our country is, but also raise the opportunities and raise before Congress a shock of laws based on laws they have and raise 20, 30 days of extraordinary sessions".

The reforms proposed by Redrado can be summarized in six laws "aimed at stabilizing the economy and proposing the growth paths that our country has forward, which are linked to global trends." Among them, Redrado highlighted legislation to "restore the independence of the Central Bank and prohibit it from financing the Treasury."

He also spoke of the importance of a "law of reform of the State, which in principle orders public companies. Some of them will have to be privatized, but most of them we have to give balanced budgets and we have to mark that if they want to be sustainable they have to manage with their own budget without asking for a loan from the treasury, "said Redrado, while speaking of the need for the budgets of these companies to be "deindexed."

Thirdly, the economist of Fundación Capital spoke of the need to simplify the current tax system and to modernize the labor system "focusing on the trial industry, generating unemployment insurance where entrepreneurs and workers can collaborate, work, each contributing to a private insurance that is that of the worker and that allows the worker to save and have it with him, that is your property," he said.

Finally, Martín Redrado's plan includes a boost to exports, bringing withholdings to zero; a federal infrastructure law and an energy and mining law. Regarding the role he would have in an eventual presidency of Rodríguez Larreta, Redrado said: "One must leave egos aside."


See also

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Dollar today and blue dollar, LIVE: how much it is trading at and what its price is this June 1, minute by minute

Source: clarin

All business articles on 2023-06-01

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