Carlos Melconian differs from Javier Milei: “Argentina has no chance to dollar”

The economist and former president of Banco Nación Carlos Melconian firmly denied the possibility of turning Argentina’s economy into dollars to deal with inflation, thus distinguishing himself from La Libertad Avanza’s deputy, Javier Milei, the main proponent of that project.

“Intellectually, dollarization can be an event. But in practical terms, Argentina has no chance to dollar“He said in an interview that he gave Alejandro Fantino on the Loose Animals program, which aired on the America channel.

Then, he provided arguments to support his position: “Let’s go from the least to the most technical. First, You can’t dollarize because you don’t have dollars. To be able to dollarize, you need to have dollars. Reserves are zero. If you enter the Treasury of the Central Bank, you open and there are zero dollars. There are only special drawing rights of the (International Monetary) Fund, gold bars and negative fees, which the Bank draws from where. It’s been like this for a year. He has negative reservations. “

“Second, you have to automatically dollarize the deposits in pesos, as if to say that from now on all those pesos are dollars, but you can’t take them out. So, when you start to see the technicalities, it’s a open heart surgery“, complete.

Meanwhile, he thought that “the peso does not have to compete with the dollar, but coexists“, because” bimonetarism has already been decided by the people “.

Dollarization was not the only initiative pushed by Milei that Melconian rejected. In addition, he spoke out against the loss of the Central Bank: “We had a relationship, now I haven’t seen him for a while, but he came to my study, I almost presented him with one of his books, he was a very good boy, but of 180 countries in the world, 179 have a Central Banknot to mention 180 ″.

On the other hand, he harshly criticized the price control implemented by the Government through the Secretary of Commerce, headed by Roberto Feletti: “First, they don’t have to restrain prices that then jump like a spring and form a quilombo. You can’t stop them, you’re in an inflationary economy. If they do it, for example, with milk, fewer people will buy it, because what do you want? That wizards will lower prices? Missing milk.

“It’s been doing that 12 years before and three now, and Macri is in the middle, with price controls, confidence and freezing, we have been on a steady decline since 2012“, added the referent of the Mediterranean Foundation.

however, tried to alleviate the economic crisis and, for that, he stressed that it is needed “to explain to the boys that the hyperinflation in Argentina it is 5000 percent a year, 4 percent a day, the same as there is now a month, which is outrageous ”.

In the end, he expected thatthe time will come when people will go to their ballsbecause he wants them to tell him the truth, to get things done and, of course, for positive results to come later ”.

GRB