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Argentines will have “to change their mentality and start thinking in Pesos”

Wednesday, May 30th 2012 - 04:30 UTC
Full article 40 comments
Senator Anibal Fernandez: “we don’t have a green-making machine.” Senator Anibal Fernandez: “we don’t have a green-making machine.”
The green-making machine according the former Cabinet Chief The green-making machine according the former Cabinet Chief
“Argentines must think in Pesos” but CFK hotel charges in Dollars! “Argentines must think in Pesos” but CFK hotel charges in Dollars!

Argentine Senator Aníbal Fernández and Interior Minister Florencio Randazzo came on stage in defence of the new restrictions placed on the purchase of dollars by assuring “they are there to preserve the value of the currency,” and that further actions might be taken.

The Senator and former Cabinet Chief tackled down all comments against the government’s new restrictions on dollar purchases. “Argentines will have to start thinking in pesos,” he stated.

Likewise, Fernández reminded that “only 11% of the Argentines have their savings in dollars, the rest have nothing to do with the issue; measures must be for all Argentines” and added, “We don’t have a green-making machine.”

“The dollar is issued in the US, not in Argentina”, recalled the Senator emphasizing “nobody wants to make life miserable for people with the measures”.

“But people will have to change their mentality. This is a typical deformation of Argentines who makes us think how the exchange money policy is going to affect us, and then jumps into the dollar”.

The former cabinet minister said that the truth is “some people are sowing the idea that Argentina must collapse”, and pointed to several media. “They want to hurt government by saying that the dollar policy is going to sink the vessel, but I can assure they shouldn’t imagine or think that is going to happen”.

“It’s the same old story, a prophecy comes true: they sponsor the worst of conditions so that devaluation follows and then they reap the profits, we know the script and those who promote it”, insisted Fernandez.

The former Cabinet Chief said the government needs to accumulate international reserves with the trade surplus to satisfy imports and address foreign commitments, and insisted Argentines must change their hoarding dollars mentality.

“We don’t live with the US dollar, we live with Argentine Pesos” indicated the former cabinet chief pointing out that “in Brazil the physical number of dollars per capital is six while in Argentina it is 1.300 dollars”.

Meanwhile, the Interior Minister assured that the government “is not worried about the parallel dollar price.”

“Those speculating over the measures are not going to be able to destroy the efforts made by the Argentine people in recent years and the fact that the economy has achieved sustained growth,” stated the minister while leading a Road Safety event in the Buenos Aires Province

“The measures implemented are to defend the value of the Argentine currency and the pockets of the Argentines”, said Randazzo who as Fernandez indicated it would be “a significant cultural advance that the Argentine economy reference is the Peso”.

Meanwhile the “blue” or parallel dollar ended trading on Tuesday at 5.91 Pesos which is a couple of cents above Monday. The official exchange rate for the dollar remained at 4.49 Pesos for the very limited and monitored operations officially allowed. The Euro dropped two cents to 5.57 and 5.72 Pesos.

The Argentine central bank ended the day with a surplus purchase of 40 million dollars said money traders in the Buenos Aires City.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Beef

    Now we have the thought police in Argentina! Think this way or you are a traitor.

    May 30th, 2012 - 06:27 am 0
  • British_Kirchnerist

    Would you say the same about UKIP for thinking in terms of our own national currency Beef??

    May 30th, 2012 - 09:38 am 0
  • Welsh Wizard

    2 I don't think that is really the same, is it? (Rhetorical)

    UKIP are advocating not changing our entire currency for another one and, though I don't like their policies, they seem to have been proved right. This is not the same as a government trying to force people to save in Pesos because it suits their financial model, especially when they know that the US$ is historically a safer haven for saving in Argentina. Furthermore, trying to sustain the value of the Peso is not really helping the economy (especially when you consider that other SA countries are gently devaluing to help competitively). It would be a little like my government telling me that I have to stop thinking in Sterling and that I should have all my savings in Euros without any fundamentally compelling reason apart from “it's what we want you to do”. My reaction to this would be “pi$$ off. Provide the frame work for me in which to live but do not start controlling my actions from day to day”. If they really want Argentineans to start thinking in Pesos then they should probably enforce it by outlawing saving in anything but Pesos.

    May 30th, 2012 - 09:50 am 0
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