Buenos Aires, June 15 (EFE) .- The Argentine government affirmed today that, with the support of the International Monetary Fund (IMF), the volatility of the exchange market of recent days will “abruptly” decrease, and assured that it will not affect to this the resignation of the president of the Central Bank (BCRA) occurred this Thursday.
In a press conference, the Minister of Finance and Finance, Nicolas Dujovne, recalled that next Wednesday will reach the country 15,000 million dollars – the first disbursement of a loan of 50,000 million with the IMF – and one half will be allocated to “support budget “and the other to” strengthen the reserves “of the BCRA- Wraithspace.
This is his first appearance as head of the Finance and Finance ministries, unified on Thursday after the appointment of the then head of the latter, Luis Caputo, as president of the Central Bank, when Federico Sturzenegger resigned.
The official wanted to convey the “tranquility” that is working with Caputo to “normalize” the exchange market and “soften the movements” of recent days, which yesterday led the Argentine peso to depreciate up to 6.41% against the dollar.
In this regard, he revealed that the monetary entity will start a process “gradual, gradual and preannounced” to replace the Central Bank Letters (Lebac), which have “very high rates and short-term maturities”, by Treasury Bills (Letes), “longer term”.
“The Treasury will issue letters in pesos in the market, with these funds we will buy non-transferable letters to the Central Bank and, with that, it will be able to cancel Lebacs”, which, in its judgment, generate a source of creation of money that, to a certain extent, “contributes to the turbulence of the exchange market”.
For the minister, this measure means replacing “a financing that became expensive and scarce” with a predictable, “stable and cheaper” one, like the one that the IMF will provide.
“Together with the elimination of the monetary financing of the deficit, the reduction of the deficit that we are accelerating with the support of the program with the IMF and the reorganization of the balance sheet of the Central Bank, we are sure that we are going to abruptly decrease the volatility, “he said.
He also highlighted the “historical change” in the fight against inflation -of 11.9% in the first five months of the year- that will mean the elimination of transfers of money from the Central Bank to the Treasury, since, in its opinion, it is a source of financing that “fueled” the price increase in Argentina “for 70 years”.
Dujovne stressed that “despite the change of names” occurred on Thursday, the economic program of President Mauricio Macri “remains the same” and the Central Bank continues to work independently of the Executive, which, he announced, is insured in a bill that the government will send to Congress in the coming days.
On the other hand, the minister said that the multi-million dollar loan from the IMF “is not a magic solution” because Argentina “has had economic problems for 70 years” but his government “is committed to solving the problems” of the citizenship even if that means paying ” political costs “.