Miguel Pesce, president of the Central Bank: “For someone to pay 200 pesos for a dollar has no rationality”

Miguel Pesce, president of the BCRA, together with the head of the Argentine Industrial Union (UIA), Miguel Acevedo

During the twenty-seventh Conference of the Argentine Industrial Union (UIA), the president of the Central Bank, Miguel Pesce, referred to the exchange rate in Argentina and in that sense stated: “That someone pay 200 pesos for a dollar has no rationale”.

“It is a type of change that does not keep rationality. The foreign exchange market operates between 800 and 1,000 million dollars a day. And the illegal dollar does not operate or millions a day, “he said in reference to the free or” blue “dollar, which he described as a” miniscule “market.

Pesce affirmed before an audience made up of around 250 businessmen at the Parque Norte exhibition center that it is necessary for the country to export USD 90,000 million in order to “lift the restrictions that especially productive companies haveThey have to turn profits and normalize commercial debt payments.

Likewise, he said that the evolution of the exchange rate, changing the devaluation step this year, “fulfilled the role of avoiding inflationary acceleration.”

“To the extent that the inflationary process allows, we are going to change the devaluation step that we have had until now.; We have to look at the competitive exchange rate and also the inflationary process, that is what we are going to do in the future ”, said the official.

In another order, the head of the BCRA highlighted that “intensive work is being done with the IMF to reach an agreement”And that the logic of the conversations is not the same as that which existed in the past decades.

“It was a classic in the fund’s programs for countries to cause exchange rate jumps at the beginning of the programs and that is not present in the negotiations we are having. We don’t believe in that either ”(Pesce)

“There is understanding with the problems of poverty that our country has,” said Pesce. And he added that the IMF does not have among its demands a devaluation plan for Argentina.

It was a classic in the fund’s programs for countries to cause exchange rate jumps at the beginning of the programs, and this is not present in the negotiations we are having. We don’t believe in that either, “he assured.

For Pesce, the exchange rate jumps only caused inflationary acceleration. “These corrections do not achieve what is sought and accelerate inflation with the consequences of poverty that no one wants for our country,” he remarked.

It should be noted that more than a year after starting the formal dialogue with the Monetary Fund to restructure USD 45,000 million, the negotiation will enter in this last month of the year in the definition zone. The Government will send a mission to Washington to bridge differences in the tug of war with the agency’s technicians, but He hopes that the final understanding will be finalized later.

The head of the BCRA, Miguel Pesce, stressed that
The head of the BCRA, Miguel Pesce, stressed that “they are working intensively with the IMF to reach an agreement”

In another order, Pesce affirmed that the country is experiencing “an important growth in exports of industrial origin”, but pointed out that “to reach the peak of 2011 we are missing USD 10 billion and, for that, we need the commitment of the State and private companies ”.

“The increase in exports and development of the financial system are two issues that are not on the political agenda” and are necessary for Argentina to move forward, said the official.

In another section of his presentation, Pesce said that Argentina needs foreign investment to grow but that the country has a high capacity to save. “The BCRA has sterilized through the Leliq and passes 4.4 trillion pesos,” he said.

Likewise, he affirmed that fixed terms of more than 20 million pesos this year grew in the order of 60% and total fixed terms 50%. “This has to do with internal restriction. But there is a strong challenge for the country so that the capital market can transform these savings into productive investment and financing for the family as well.“, I consider.

“What is happening in the capital market is encouraging but it is not enough. It grew strongly last year and this year, but I think we have to put in an additional effort. If we fail to develop our capital market, those 4.4 trillion pesos sterilized at the BCRA, it will be very difficult for the economy to digest it, “he remarked.

Finally, he referred to the growth of the economy forecast for this year and stated: “Argentina always surprises. This year we had predicted that the economy would grow by 7% and our estimates give more than 9% and others around 10%. This changes the axis of discussion that we had been having ”.


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