Martín Redrado warned the Argentine government: "Bimonetarism is a problem that must be solved."

Economist Martín Redrado criticized the bimonetary model in force in Argentina and called for a more active role for the state in promoting economic development through infrastructure projects and a more efficient exchange rate policy.

"Bimonetarism is a problem that must be resolved, not only by restricting the circulation of pesos, but also by generating the inflow of dollars," stated Redrado, who also called for moving toward a completely free exchange rate system. "The exchange rate system should be completely free and governed by supply and demand, for both individuals and companies," explained the former president of the Central Bank at the 70th annual exhibition of the Argentine Chamber of Construction ( Camarco ).

At the same time, he emphasized that Argentina has solid pillars on which to build to move forward in this process. "There are fiscal and monetary pillars, especially because the Central Bank no longer acts as a financing entity," he noted. For Redrado, this is an important step, but not sufficient if it is not accompanied by a strategic agenda that incentivizes productive development.

"The government should accelerate the call for bids for many infrastructure projects because they are key to economic growth and development," said the former head of the Central Bank. In this context, he also mentioned the country's untapped potential: "In Argentina, there are 320,000 hectares of so-called rare earths that remain unexplored. We must reach agreements that generate added value for Argentina's assets and resources."

Regarding financing, Redrado acknowledged the history of corruption in bidding processes, but proposed an alternative: "This situation can be resolved by developing an audit process in conjunction with multilateral lending agencies. Financing could come from the Inter-American Development Bank or the World Bank, with audits by those same agencies based on work certifications."

If multilateral financing is not available, he proposed another option: "If that path cannot be explored, we must begin the process linked to private sector investment. It is necessary to extend the terms of concessions. A case in point could be the railways, most of which were privatized during the 1990s and whose concessions were extended for a year and a half, a period that does not allow for investment planning."

"Concessions should be for 10 or 20-year terms, but requiring that the necessary investments be made during that time for efficient operation. We could also explore the option where private companies build a necessary project, operate it for a profit, and once the concession expires, hand it over to the State," commented Luciana Salazar's ex-husband.

"There is a new international paradigm characterized by competition between China and the United States. We must be on the lookout for infrastructure financing opportunities that are opening up around the world as a result of this dispute," he concluded.