Argentina's newly-appointed Central Bank (BCRA) governor Alejandro Vanoli claimed a “devaluation attempt” by 'concentrated powers' and rejected any official plans to downward the value of the country’s currency. He pledged to discourage speculation and to “put an end to abuses from financial institutions.”
“There was a clear attempt by some sectors to trigger a new devaluation of the peso,” Vanoli stated in an interview with Pagina/12 newspaper. “But prices dropped, there was no devaluation with no good deal for them.”
Since he was appointed as head of the BCRA in October 2, Vanoli has implemented measures to discourage the purchase of foreign exchange currency (for imports and the purchase of dollars through the blue-chip swap) and to strengthen the peso by raising fixed-deposit interest rates.
Vanoli stressed that he does not answer to the financial market as he pledged to discourage speculation. He pointed out that since he arrived in office the blue-chip swap rate has dropped by 2 pesos.
“We are taking every step not only to stabilize the exchange market but also to create the conditions to accelerate exports sales,” Vanoli stated.
Asked about the country’s reserves level, Vanoli said that “they exist to be used” and that “the government is not afraid to use them to pay debt.” However, the official pointed out that the BCRA is expected to end 2014 with a level of reserves “close to the current level” (27bn dollars) as a result of “an increase in exports sales” and the swap deal signed with China, which should be implemented before the end of the year.