MercoPress. South Atlantic News Agency

Argentine central bank and Economy ministry seal “policies coordination”

Mrs. Kirchner has ensured full control of the Central Bank

Argentina’s Economy Minister Amado Boudou and Central Bank Governor Mercedes Marcó del Pont announced the appointing of the Council of Exchange, Financial, Economical and Monetary Politics.

Following a meeting with President Cristina Fernández de Kirchner, Boudou and Marcó del Pont gave a press conference at the Treasury Ministry where they described what the council will deal with and that “the main objective is to merge the macroeconomic policies with the financial.”

Boudou added that it will be formed by Central Bank and Economic Ministry's officials.

The representatives of the CB will be Governor Marcó del Pont, Vice Governor Miguel Ángel Pesce and a director that will be designated during the following days. Those from the Ministry will be Boudou, Finance Secretary Hernán Lorenzino and Economy Policies Secretary Roberto Feletti.

The Economy Minister said that “there can not be a lack of coordination” in economic and financial matters “because they would not achieve their target.”

Marcó del Pont added that the creation of the Council “is implied in the CB Law, it somehow states that there is a need of coordination”.

Boudou also referred to the evolution of prices and reiterated the Kirchner’s administration view that there “is no inflation” rather price “tensions and readjustments” because of several bottle necks in production sectors.

He called on the media and private analysts to avoid “a simplistic view” of the issue which blames price rises to a stronger demand. “We can’t argue that there’s an inflationary problem without having to admit that the only solution is a deep adjustment, which is not the case. We have a temporary supply problem in certain sectors” emphasized Boudou.

Boudou praised the creation of the council because it will help coordination between the Ministry and the central bank. “You can have an autarchic bank but not with autism” he added clearly in reference to the recently ousted central bank president Martin Perez Redrado who openly defied the Kirchner’s plan to tap reserves to pay for sovereign debt.