Post by account_disabled on Feb 27, 2024 22:34:53 GMT -5
Suggested that the accumulation of international reserves by the Government since he took office on December 10 represents a sign that he is managing to pave the way towards dollarization of the economy.
According to Milei, with recent foreign currency purchases and an eventual clean-up of the remunerated liabilities of the Central Bank of the Argentine Republic ( BCRA ) -short-term debt instruments- the country would be in a position to dollarize for a relatively low amount.
In the last month we bought US$ 5,000 million and the Argentine monetary base is close to US$ 7,500 million. Therefore, if we finished cleaning up the BCRA's paid liabilities, we would be in a position to dollarize for very little money. ”He told the American newspaper.
These statements have once again Asia Mobile Number List stimulated the debate on the viability and implications of dollarization in Argentina . Bloomberg Line consulted the following economists and financial analysts:
Marina Dal Poggetto, EcoGoMarina Dal Poggetto, director of the consulting firm EcoGo, criticized the rationale for Milei's perspective.
On the one hand, he highlighted that net international reserves are around -10 billion dollars, while pointing out that the conversion exchange rate used by the president is almost ARS$600 higher than the current official dollar.
Milei once again insists that we are approaching dollarization. His story is simple and fallacious. "said the economist, who shared three comments on the matter with this medium.
The purchases accumulate 5.9 billion dollars, but net reserves went from -13 billion dollars when he took office to -10 billion dollars, and without accounting for the issuance of Bopreal for 4 billion dollars as a liability in dollars. Meanwhile, to calculate the monetary base in dollars he failed to warn that he uses a dollar of $1,400, 70% higher than the current one and 13% higher than the gap. The monetary base represents only 2.5% of GDP, but in pesos it amounts to $10.5 trillion.
It is true that remunerated liabilities have been liquefying by leaps and bounds, but even today, after the placement of Bopreal finished impacting last week, they still reach $25 billion, 6% of GDP, which represents two-thirds of the deposits.” in the financial system. Taking the official exchange rate, the paid liabilities represent US$30 billion.
Likewise, the different price between the debt in dollars (with parities less than 40) and the debt in pesos (with parities around and even higher) 100% depending on the indexation, with a much shorter maturity profile) responds to the existence of a lender of last resort that disappears instantly if it were dollarized.
According to Milei, with recent foreign currency purchases and an eventual clean-up of the remunerated liabilities of the Central Bank of the Argentine Republic ( BCRA ) -short-term debt instruments- the country would be in a position to dollarize for a relatively low amount.
In the last month we bought US$ 5,000 million and the Argentine monetary base is close to US$ 7,500 million. Therefore, if we finished cleaning up the BCRA's paid liabilities, we would be in a position to dollarize for very little money. ”He told the American newspaper.
These statements have once again Asia Mobile Number List stimulated the debate on the viability and implications of dollarization in Argentina . Bloomberg Line consulted the following economists and financial analysts:
Marina Dal Poggetto, EcoGoMarina Dal Poggetto, director of the consulting firm EcoGo, criticized the rationale for Milei's perspective.
On the one hand, he highlighted that net international reserves are around -10 billion dollars, while pointing out that the conversion exchange rate used by the president is almost ARS$600 higher than the current official dollar.
Milei once again insists that we are approaching dollarization. His story is simple and fallacious. "said the economist, who shared three comments on the matter with this medium.
The purchases accumulate 5.9 billion dollars, but net reserves went from -13 billion dollars when he took office to -10 billion dollars, and without accounting for the issuance of Bopreal for 4 billion dollars as a liability in dollars. Meanwhile, to calculate the monetary base in dollars he failed to warn that he uses a dollar of $1,400, 70% higher than the current one and 13% higher than the gap. The monetary base represents only 2.5% of GDP, but in pesos it amounts to $10.5 trillion.
It is true that remunerated liabilities have been liquefying by leaps and bounds, but even today, after the placement of Bopreal finished impacting last week, they still reach $25 billion, 6% of GDP, which represents two-thirds of the deposits.” in the financial system. Taking the official exchange rate, the paid liabilities represent US$30 billion.
Likewise, the different price between the debt in dollars (with parities less than 40) and the debt in pesos (with parities around and even higher) 100% depending on the indexation, with a much shorter maturity profile) responds to the existence of a lender of last resort that disappears instantly if it were dollarized.