The Limited Times

Now you can see non-English news...

The market question reached the Government: will Martín Guzmán or the minister who follows him devalue?

2020-10-23T03:00:58.416Z


The Minister of Economy wants to have the new agreement with the IMF closed this year. The exchange rate gap complicates it day by day.


Ignacio Miri

10/22/2020 21:47

  • Clarín.com

  • Politics

Updated 10/22/2020 9:47 PM

The

punishment of empowerment

came to Martín Guzmán at the wrong time.

With exporters liquidating sales at an insignificant rate compared to the tide of people and companies that are eager to get rid of the weights, the Minister of Economy attends, week by week, the desperate spectacle of verifying that his decisions

survive in the world real many fewer days

than those that remained in the imagination of the officials before becoming resolutions.

It happened with the measures that sought to promote the sale of the grains - which Alberto Fernández himself already considered failed - and it also happened with the adjustments aimed at lowering the price of the dollar in cash with liquidation.

That enthronement came at the wrong time because Guzmán - and also the President - was

betting on getting the IMF to approve

the new line of credit

in December

to pay the maturities of the debt that Mauricio Macri took.

The emergencies had already pulverized the original April deadline for the closing of that negotiation that Sergio Chodos had imposed on himself at the beginning and that is why the Government began to talk about the new date.

Even officials who speak with the President are analyzing the possibility of negotiating with Kristalina Georgieva officials for

an extension of that credit

so that Argentina can count on

fresh dollars

to shore up the Central Bank's reserves.

Before that date, the Government

will have to have the 2021 Budget approved in Congress

.

The intention of the ruling party is to show the IMF a law voted with an

important consensus

.

To achieve this goal, Máximo Kirchner is dedicated to containing his own deputies, Eduardo Wado de Pedro to secure votes among the Peronist governors and Sergio Massa to attract those of the governors of Juntos por el Cambio, the provincial parties and even part of the change-minded deputies who do not respond to governors.

All this is achieved, as happened to the tango boy,

paying like a chabón

.

That agenda shakes with the various incarnations of the dollar climbing by the hour.

How long will Guzmán be Minister?

"

Alberto wants it to bank until the new agreement with the Fund is signed, but ...

"

one of the leaders who spoke several times a week with Guzmán and the President

wrote to

Clarín

in response.

"The question is

whether he

is

going to devalue him or the Minister of Economy who comes after him

is

going to devalue

," says an official deputy.

"There is no deep crisis, but there is a malaise and that means that the measures do not last a day for Martín," completes one of the ministers of the Cabinet's economic area.

The fear of the

inflationary flash

that will trigger a devaluation and the increase in poverty that these increases will bring is what is delaying a decision that the market has long taken for granted.

The perception that the exchange rate distortion

has no possibility of persisting

is so ubiquitous that companies as dissimilar as automotive companies and material yards make the same decision: not to sell.

Cars are not offered because they have imported components and cement is not shipped because its price is tied to the dollar, but neither is the sand that is collected from the river offered.

It is the problem that the dollar slates have in Argentina: you look at them and you don't have to explain anything else.

To give an idea of ​​the drama with which this issue is lived in the Government, there are already several officials who welcome the initiative promoted by the Ministers of Tourism and Transport to

allow flights from Brazil, Uruguay, Paraguay, Bolivia and Chile

.

This measure, which will be approved in the next few days, will allow citizens of those countries to come to Argentina to take advantage of the exchange rate difference offered by the little trees that will chase them in each step they take.

They are going to have to eat a

lot of chorizo ​​steaks

and tip a lot in San Telmo to move the needle of the exchange market somewhat.

This rarefied climate is what, at all times, generates discontent within the Frente de Todos.

Maximum was

the minimum and necessary time

in the act of October 17 in the CGT.

This is not the time to celebrate anything, he said when he left the event in which he spoke to the President.

In their space they are also discouraging the fanfare of October 27 with which the Government wants to celebrate a year of triumph in the 2019 presidential elections, a date that coincides with the ten years of the death of Néstor Kirchner.

Sectors of the Frente de Todos already say that the ideal would be to leave flowers in the Plaza de Mayo and circulate Kirchner's speeches on social networks and

not much else

, as if to record the vocation of austerity.

Source: clarin

All news articles on 2020-10-23

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.