Economist and Director of Quantum Finance, Daniel MarxThis Saturday is considered to be a proposal dollar “Far” from being “the magic bullet for all of Argentina’s problems”, noting that the latter Exchange rate fluctuations have “calmed down” in recent days.
Marx referring to Dollarization proposals for the candidate of La Libertad Avanza, Javier Meili, That close to the election there is usually “Proposals guided more by personality than medium or long-term solutions”other than the fact that the Argentine economy – as he noted – is in a “worrying situation” with “problems that are protracted”.
“I think you should We think well about dollarization Because a lot of times one sees this as a Magical solution Of all the problems of Argentina, which is Far from itThis morning confirmed in an interview with AM 750.”
The specialist pointed out that dollarization “means Abandon monetary policyIn a country like Argentina it is “related” in terms of the world economy, and has “an economic cycle different from that of the United States.” For Marx, instead of dollarization, “it is convenient to do things so that there More credibility, use and confidence in weight“.” If so, then dollarization is not necessary; And if not and you dollarize, you will also have problems.”
regarding electionsMarx regretted that the country has a history in it It’s related to “exchange pressures.” He asked, in this sense, that both government and opposition candidates Try to contribute to the stability of the system.
“It’s a position we have to work on. It seems to me to be in everyone’s interest, especially in the population’s interest, because it has so much instability,” Marx said, adding that the country “has imbalances.” “He should try to beat it” along with “the more stable rules of the game, Overcoming what could be electoral issues“.
In this context, he highlighted that the latter volatility in the exchange rate He seems to have calmed down in recent days.. The analyst added, “The movement of deposits is moderate. Those that are dealt with in pesos continue on their course and there are no external inflows, because they are more encouraged by the rise in interest rates with fixed terms; while deposits in dollars are also relatively stable.”
According to Marx, “calm” signs And also, “Banks are very liquid, as a result of which they are more inclined not to lend and to hold.”
The economist also referred to the government’s renegotiation with International Monetary Fund (International Monetary Fund).
“I’m not involved in the negotiations, but beyond that they’re going to talk about discussing reserve targets and taxes because Income will be affected. He said that it is supposed to be reconsidered in the future, “noting that another possible amendment would be”Progress towards June of payments Planned for the second half of the year.
“Reserves are scanty and affected by drought,” Marks noted. Then he concluded, “This is supposed to be temporary and that next year it will reverse, but it must happen this year, and for this reason it is seen that the Ministry (of Economy) is looking for some financing efforts.”