Lacunza's self-criticism for the lifting of the stocks in 2015: “Argentina cannot have a free floating exchange rate”


The finance minister, Hernan LacunzaHe recognized diplomatically that the lifting of the stocks implemented at the beginning of the administration of Mauricio Macri was a mistake. When asked by Luis Novaresio in Radio La RedHe replied: “With Monday's newspaper and thinking towards the future, Argentina may not have a free floating exchange rate ”.

"A mistake? They are inconsistent policies. To have first world institutions, without controls and without regulations, you have to have the rest of the economy well: fiscal balance, external balance, etc., because otherwise any imbalance has an impact on the exchange market", developing.

Lacunza marked a counterpoint between the vision that the government had at the beginning of the management and the one it currently has. He recalled that the lifting of the stocks was carried out because there was great confidence in the economy at the beginning of the new government and otherwise it would have been impossible to move forward with the end of the exchange restrictions.

In spite of this, he described the stocks as a “transitory abnormality for an emergency situation” and suggested that the next government would find the ways to progressively lift it.

"Today the stocks respond to an irrational demand. If we say that the exchange rate is fine, Why does anyone want dollars for speculative, genuine, but speculative reasons? For that we must show that this is irrational, that the dollar is good, and have voluntary sources of financing. With that, it will allow raising the stocks"He added.

Other outstanding statements of the Minister of Finance:

“The world also shows experience of lowering apoco inflation; Many countries in Latin America, with high inflation in the 80s, are possible, healthy and non-precipitous experiences. I think that is what comes ahead. ”

"The Dollar Counted with Liquidation is very specific to a sector, but the 61 dollar is almost double November 2015 and 60% higher than it was worth in April 2018 when the turbulence began"

“After the increase of the dollar in the STEP, when it went from 45 to 60, it seems to us that its value is already exaggerated. Validating additional increases would bring nothing more than inflation and more poverty. ”

"Exports that have been growing for the fourth consecutive years, we correct the external deficit, what we trade with the world is balanced, no higher dollar is needed"

“For us, the International Monetary Fund was a source of financing in a time of stress. It was used in almost 90% to pay private debt that is more expensive. ”

"The IMF is a possible source of financing, but if the incoming government has another more open financing program, welcome, you will have to put it on the table as of December 10".

“The policies are reasonable, the numbers are not. The debt is 310 billion dollars, increased 70 billion dollars in this management. It is 70% of GDP (Debt and GDP at current prices). It is not a high debt in volume, but with closed markets it has concentrated maturities, where you can live for a while with the stock of reserves, but you cannot live like this forever. ”

"I think the first link that the next government has to solve is debt negotiation, to oxygenate the financial requirements of the coming years."

“The economic team of Alberto Fernandez is not conformed. But they are all professional referents with a lot of experience in the public sector, which is important, it is a differential because the public sector has other logic to those of the private sector such as decision making. They have sufficient suitability. ”

"I have not defined the future. But it would be a pleasure (to be an advisor in the City) if I did. But I am focused on ‘seasonal the boat on the dock’ and I don't want to distract myself from that function so as not to get confused. It is a possibility that we will evaluate after finishing the management"

“It seems to me that within the difficulties that we all recognize, we have taken severe measures in this period, I mean the exchange controls. As they are transitory. A country is not going to develop well with these transitory measures, not to be confused with something permanent. But they were necessary to avoid greater evils. ”

"At the end of August, the forecasts – unfounded – of the market, mentioned hyperinflation, corralito, uncontrolled devaluation; none of that happened because the measures to be taken were taken"

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