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For a key figure of Caputo at the Central Bank, "the mindset of businesspeople is beginning to change" and prices are already falling.

For a key figure of Caputo at the Central Bank, "the mindset of businesspeople is beginning to change" and prices are already falling.

The government celebrated the fact that the lifting of the currency controls did not affect prices and that April's inflation figure was lower than expected. Now, economic team officials anticipate that this trend will deepen in the coming months, in the midst of Phase III of the economic program, with the dollar expected to reach the floor of the band and in an economy experiencing increased foreign currency flows due to increased agricultural exports and the long-awaited announcements about the use of "cushion dollars," expected to be announced this week.

This Sunday, Federico Furiase, a key figure in Luis Caputo's team on the Central Bank's board, said in a radio interview that he is already seeing " a change of heart" among business leaders, in line with the guidelines of the economic plan.

"There's a macroeconomic program that's going through its sequences, with steps being taken, and when there's macroeconomic order, just as the dollar can go down, which was what we had anticipated, prices can also go down, which is what we're seeing in this context. We've got falling prices for aluminum, food, and cell phones, due to the end of monetary issuance. In addition, there's a whole program of intelligent trade opening, with deregulation, with lower tariffs, with lower taxes," he listed.

In this regard, he anticipated that the price declines that some consulting firms had already recorded for the second week of May could deepen in the coming months. " It no longer pays to adjust in case of doubt: we are seeing price declines; the mindset is starting to change," he said in an interview on Radio Rivadavia.

Furiase emphasized: "We are not surprised by the dollar being closer to the floor than the ceiling of the band, nor by the fact that inflation figures have been well below what was forecast. Because there is a macroeconomic program, because there is a more competitive environment with deregulation and lower taxes, and all of this translates into a drop in inflation sooner or later."

The official emphasized this new momentum for the macroeconomic situation and asserted that months of increased dollar flow are coming, due to a greater agricultural liquidation and the impact of the "whitewash 2.0" program, which the government is working on to finalize details and present this week.

"Today, the economy is growing at 6% annually, and to sustain that growth, with falling inflation, we need to fuel it, we need to remonetize it. Today, we have ridiculously low remonetization levels, the amount of money, the amount of pesos, as a result of all the crises we've had, where people in that economy were fleeing the peso. And then, in our program, to avoid hyperinflation, the risk of hyperinflation left by the macroeconomic legacy, we had a program that was very, very orthodox in monetary terms," ​​Furiase explained.

While he did not specify the Government's expectations regarding the amount of dollars that could enter through this means, Furiase was optimistic. "Remonetization in dollars will help sustain this growth process with lower inflation, because the amount of pesos is also fixed and a greater supply of dollars is being generated and this also helps growth to occur while maintaining the strength of our currency, because the equation closes with more dollars and fewer pesos and with lower inflation and poverty," he said.

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