10/25/2020 11:06 PM
Clarín.com
Politics
Updated 10/25/2020 11:07 PM
The Deputy Chief of Staff, Cecilia Todesca,
ruled out
on Sunday night that a devaluation is going to take place, at the same time that she considered that
the exchange rate is not behind
the dollar.
Likewise, the economist assured that if you devalue the currency and remove the exchange controls, the same economic scheme of former president Mauricio Macri would be applied and "that did not work."
"The question is: what is the problem that the devaluation would solve? What we have well documented is that
the devaluations are contractive
," Todesca said in dialogue with channel
C5N.
In this sense, the official explained that an eventual devaluation would affect prices, which in turn would impact the purchasing power of wages and
pensions
.
Finally, according to his reasoning,
demand would
fall as the purchasing power of wages falls.
Todesca then considered that "Argentina can function with this exchange rate" which is "relatively well".
Among other points, the deputy chief argued that it would not be necessary to devalue because
there are no important payments in the near future
in foreign currency due to the debt restructuring and, on the other hand, because "it would be difficult for
an export shock to
occur
"
only due to the depreciation of the peso and in this international context.
He also warned that there is an increase in imports, which he attributed, on the one hand, to the expectations that the Government may devalue and, on the other, because "the real economy" is showing signs of recovery. "
Finally, he acknowledged that "the exchange rate is not holding back", since they are making "small slides that more or less accompany inflation."
He summarized: "
We do not use the exchange rate as an anchor."
He closed: "You will liquidate the exchange gap if you devalue and if you remove all the controls and
if you remove all the controls, that is Macri that did not work either.
It was 20 months without regulation in the exchange market in Argentina and it not only resumed debt levels that it did years that you did not see, but had to
end up asking the IMF for money
because it generated a balance of payments crisis. "
Look also
In another attempt to lower the exchange rate pressure, the Government issues another round of bonds tied to the dollar
The Government asks for time but society demands certainty