This was stated on Wednesday by the head of the cabinet of advisers to President Alberto Fernández, Antonio Aracre the sour dollar will have no impact on inflation. Moreover, interrogated to whom it proposes a “devaluation leap”.
“What the Ministry of Economy is trying to implement It is an improvement in the competitiveness of regional economies with a higher dollar, but, at the same time, try to demand a commitment from them to access this benefit”, Aracre explained this morning in dialogue with FM Urbana Play.
In turn, he indicated that producers “must guarantee internal supplies at the prices they exercised before this improvement, generating the volume they normally pour into the local market so that a shortage does not arise”.
According to the consultant, “the measure is well designed” and “implementation will be key to ensuring” that it does not affect domestic prices. “It won’t affect inflation”, Aracre pointed out.
The new edition of the Export Increase Program (PIE) establishes a differential exchange rate of $300 to the dollar for the soybean complex and regional economies. They value this plan will generate a currency settlement of approximately US$9,000 million. However, since it started on Monday, it has lagged behind, according to the producers, as they await further definitions.
In this sense, Central sources announced that this Thursday, The institution’s Board of Directors will approve a rule that allows for the insertion and not the disbursement of pre-financing for 180 dayssomething that was in effect in the previous two versions of the soy dollar, but has not been used.
The soy market remains paralysed, meanwhile and despite the decree published on Tuesday in the Official Gazette -which regulated the soy dollar- “is ironed”, industry sources reported to Clarin.
Aracre, the former CEO of the local branch of the multinational Syngenta remembered him in the special exchange “The crops that are the basis of the food raw material such as corn, wheat and sunflower do not enter”.
Instead, when asked about the amount of pesos that will need to be issued to deliver in exchange for foreign currency, Aracre said this “will be sterilized and, to a large extent, fiscally offset because 33 percent of the soybeans are withheld.”
“When withholding tax is charged on a higher exchange rate, on the one hand, you have to issue it, but, on the other hand, more money comes in (as collected) so it is probable what to be released is much less”accurate.
This was underlined by the presidential adviser “many believe, and especially in opposition, that the solution to all problems is a devaluation”.
However, the official rejected this measure and believed that it would generate “a general increase in prices and a significant deterioration in the quality of life of people, because salaries are always far behind in terms of type and amount, without generating that leap in competitiveness that we want to seek”.
“It solves nothing for the people, from a social point of view, and therefore not even for the country,” he added.
Finally, the official said the effort of the Palacio de Hacienda is precisely to avoid a jump in the exchange rate.
“In fact, the Minister (of Economy, Sergio Massa) these days in the United States is reviewing this whole reserve issue and receiving some kind of income from bilateral and multilateral organizations to build this very bridge after the drought has left us $20,000 million,” Aracre said.
NS
Source: Clarin
