Miguel Angel Pesce responded to Milei’s suggestion that the BCRA be “dynamite”: “Central banks are needed”

IMF objectives, devaluation, financial issues, reserves, dollars and debt. The head of the Central Bank, Miguel Angel Pesce, made a broad point about the key issues his administration is addressing. Furthermore, during the consultation, he took the opportunity to respond to representative Javier Milei who suggested that the monetary entity was “dynamite”. “Central banks are needed”said.

Regarding the review conducted by the International Monetary Fund these days on the latest agreement signed with Argentina, the BCRA president said that the review is the objectives for the first quarter, and ensured that they are “more than fulfilled”.

Speaking about the hottest topic in his portfolio: the dollar, Miguel Angel Pesce said: “No devaluation intent” in understanding the Fund. And in this regard, and contrary to what some say, he made sure that neither the government nor the multilateral organization sees the “exchange delay.”

Along these lines, Pesce explained that the agreement takes place as a reference to the dollar value forecast for the end of last year. “All economists recognize that we should not look at the nominal exchange rate but at the real multilateral. It also means taking into account the inflation of the countries where Argentina trades and our own inflation, ”he added.

“In getting these values, we don’t find a delay in the exchange rate because both local inflation and that of our trading partners have accelerated and there are also processes of devaluation, especially in Brazil, ”he said in an interview with El Destape radio.

On the subject of reserves and the concern that the BCRA coffers have not strengthened themselves, Pesce tried to dismantle this pressure: “In the first quarter, we bought more dollars in the market than expected.” Later, however, he admitted that while “in the first quarter, the reserve goal was reached, in April had fewer results, but that will be reversed in May “,

In that sense, he commented that “we are waiting for the end of May, with many irregularities, it slowed down in April and now. according to today it has a good level “ this month. “We hope this will continue in the future because producers need money to pay the costs of harvesting, planting in the future and the taxes they have to pay, ”he added.

Regarding debt repayment to the private sector, the head of the monetary entity said that “a rule was established in September 2020, that companies they can only pay 40% of what is due and the remaining 60% will refinance it. ”This rule is followed, and allows us to use fewer reserves for this type of obligation and allows companies to comply within market conditions for the payment of their obligations, ”he clarified.

Pesce did not avoid the question of inflation, which in March was 6.7% and in May -with the number fresh from the oven- 6%, thus putting the price index at 58% per year. “Undoubtedly, price shocks such as strong reductions or strong increases in international raw material prices accelerate inflationary processesThat has been proven, “he said.

And he kicked in when the direct question was about the effects of the issue on said price index: “Certain conditions have to be met for the impact of the financial issue on inflation to occur.”

The crossing between Miguel Angel Pesce and Javier Milei

The deputy of “Freedom advances”, Javier Milei asked, speaks whenever he can that Ban Central should be “dynamite”. Pesce, however, in his most exhausting style, crossed over with that idea: “For me, there is no country in the world without a central bank. That idea is huge “. “Central banks are needed.”

“When the mechanisms sought to override the BCRA’s capacity for macroeconomic action, such as convertibility, we went into the longest recession in Argentina’s history and one of the longest recessions in the world, with the longest deflationary period in history. “, warning.

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