After Milei’s trip to the Council of the Americas with investors in New York, the fourteenth to the United States in his mandate, the new chancellor and former Secretary of Finance Pablo Quirno justified the number of trips with sincericide, “sometimes we criticize the number of trips that the president makes, we are going with the suitcase as we say to sell Argentina.”
Luis Caputo also met with investors in New York at a meeting organized by JP Morgan. There he assured that the movement of the bands could accelerate by 1 to 1.5% per month.
In that talk with about 40 investors, Caputo confirmed that he plans to buy back sovereign bonds and begin to accumulate reserves even while the peso operates within its exchange band, the Bloomberg agency published.
Given the spread of the changes in the bands’ exchange scheme, Caputo came out to deny it. “I feel comfortable with any price of the dollar that is within the band as it will be. I am comfortable because I know that it cannot pass the ceiling of the band. I would prefer that it not go to the floor of the exchange band. If it were much below today, it would not do the economy any good,” he commented in an interview with La Nación +.
Regarding the possibility of moving towards a total float of the exchange rate, Caputo considered that the current scheme “is superior.” “If the dollar rises to the ceiling of the band, it doesn’t happen from there. So go to sleep peacefully because nothing happens with the dollar,” he added, assuring that with the bands “we are giving it the predictability” that “people want.”
Caputo also confirmed what the Argentine ambassador in Washington, Alec Oxenford, had announced in the morning: “The trade agreement has been worked on for many months between the Foreign Ministry and the Economy. The agreement is ready.”
“We hope it is announced as soon as the United States decides. Because the United States is working at the same time with many countries and they decide the order of the announcements,” explained the Minister of Economy, in an interview with LN+.
The new “buy champion” and why the dollar does not fall after the electoral victory
After the “champion purchase” Caputo came out to boast about “I slept peacefully”, ensuring exchange stability. The truth is that in order to contain the price of the currency, the Government resorted to financing from the IMF and then from the United States Treasury itself, in addition to the juicy benefits to the cereal companies so that they could liquidate before the elections.
Milei and Caputo fail to accumulate dollars, quite the opposite. Last week, a new payment was made to the IMF for 796 million dollars. Specialists and market operators wonder with what resources the payment was made since the national Treasury only had US$148 million deposited in the BCRA.
In the absence of transparency and information from the Government, it is estimated that the payment to the IMF was made with IMF silver or that the US swap was activated, which represents a new liability for the Central, increasing the red of the reserves that are estimated at -US$ 12,000 million net.
In that sense, according to analyst calculations, to meet the International Monetary Fund (IMF) reserve goal for the end of the year, the BCRA should accumulate at least US$9 billion in two months. In this way, to comply with it, net reserves need to be at least -US$2.6 billion.
A scenario that is difficult to fulfill, which will require a new waiver request (exemption request) from the Fund, unless the financing with private banks that the Government expects for US$ 20,000 million is completed, from which JP Morgan requests guarantees.
The Government goes out with its “suitcase to sell Argentina” to international banks, mortgaging our resources. To stop the looting it is necessary to ignore the debt scam. There is no possible way out while this odious debt continues to be paid. Nor without breaking with the IMF regime and its anti-worker reform plans, such as the labor reform that implies a war plan against workers. A worker and popular mobilization with a fighting plan is necessary to put the interests of the majority above those of a handful of international bankers.
Source: www.laizquierdadiario.com
