Sergio Massa confirmed Gabriel Rubinstein as the new Secretary for Economic Planning.
Gabriel Rubinstein had to come out to deny a possible devaluation of the dollar. In an audio that circulated on Sunday evening, the Deputy Minister of Economy categorically rejected the possibility that the Government announces a leap in the official exchange rate.
This was stated by Massa’s deputy “there is no imminent devaluation” and to which the rumors that have taken hold in recent days in the financial world respond «An operation that is taking place on several fronts. I assure you 100% that there will be no devaluation, “he said.
In the first three weeks of Sergio Massa at the helm of the Ministry of Economy, “calm” financial variables: In just under a month, the blue dollar moved from its high of $ 314 to stabilize just above $ 290; dollar bonds stopped hitting lows round after round and country risk moved away from the highs it reached in mid-July.
The prices of Argentine companies listed on the stock exchange are also recovering: abroad and on the local market, there are newspapers that earn almost 50% in August. The rebound in prices has consolidated in recent days, after Massa confirmed the arrival of Gabriel Rubinstein in his team and after showing concrete signs of fiscal austerity.
However, in the city they believe their programIt has yet to show how it will resolve the currency front and strengthen a central bank, which, although it has stopped losing reserves systematically, has not yet managed to recompose dollar income. “The ability to accumulate reserves in 2022, given the volume of the harvest, was very limited,” said José Echagüe of Consultatio.
“The foreign exchange front is where the minister’s agenda shows the least progress and where time passes fastest. The initial agenda included the objective of accumulating reserves through the implementation of the “soybean dollar” which would allow early settlements, but within days of the deadline the results are almost nil. The same happens with the reserve strengthening operations announced through the management of swaps or repurchase agreements “, added Echagüe.
For economists, the leeway to implement some of the announced fiscal corrections could be affected by the growing political crisis that the Frente de Todos is experiencing. Massa will embark on a key trip to Washington this week. His goal is to obtain the dollars necessary to strengthen the coffers of the Central and, at least to delay, a change in the exchange rate regime.
“Fiscal restraints gained more visibility on the agenda, which helped improve dollarized bond parities after a strong downtrend until late July. However, the implementation of the announced measures represents a challenge“, they warned in Delphos.
At the same time, the consultancy highlighted that “without international financing” the corrections on the fiscal front and the need to incentivize exports “will require more than one fine-tuning.”
Source: Clarin
