The Minister of Economy of the Nation, Sergio Massadeclared this Thursday that “It would be a lie to say restrictions can be fixed in the short term” exchange rates, because for that we need a Central Bank that has “strength”.
“It is evident that the The big challenge is that Argentina has a strong point in its Central Bank which allows the flow of capital to have the naturalness it has all over the world. Today we do not have these conditions and it would be a lie to suggest that they can be fixed in the short term,” Massa stressed.
Speaking at the 21st Propymes seminar organized by the Techint Group, the national official predicted, “Argentina will have these conditions when it has consolidated its export volume and will have a second turbine to accompany the sector as a strong export complex in GDP.”
From the La Rural property in the Buenos Aires neighborhood of Palermo, he stressed that “because of the restrictions and the (exchange) stock crisis, they had to put governments of a different political color.”
“You could say the controls were put up by ‘so-and-so’, but note that Due to the restrictions and the crisis, the actions had to put governments of different political colors. Lower and lower withholding taxes were to put governments of different political colors. This has to do with Argentina’s structural restrictions,” she said.
In this sense, explained the manager of the Palacio de Hacienda: “Argentina has as one of its two fundamental problems that we export at a value of 400 dollars per ton and we import at a value of 1,100 dollars per ton”.
Furthermore, he stated that another of the structural problems must have an answer from the political leadership: “If we do not establish as a state principle that The state cannot be financed with a monetary issue, our currency will never have credibility. Argentina has a currency credibility problem that became more evident with the 2001 crisis.”
“Managing the restrictions is very difficult and managing the restrictions and growth is much more difficult. Our challenge is to continue to grow and continue to generate formal employment. We arrive with 23 months of employment growth without the restrictions causing us any macroeconomic damage “, he has declared.
In this framework, he said that “the medium-term challenge is to build an economic model that allows the normal functioning of the capital market, the flow of currency, a single market of free exchange, but that is built step by step”.
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Source: Clarin
