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Montevideo, December 1st 2022 - 20:52 UTC

 

 

Argentine central bank “ready” to counter surprises ahead of this year's presidential election

Saturday, February 2nd 2019 - 08:59 UTC
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Argentina’s central bank has sufficient dollar firepower to deal with a spike in demand for the greenback if uncertainty over the country’s upcoming presidential election prompts another run on the peso, bank sources said on Friday. Read full article

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  • Enrique Massot

    The recipe to stabilize the peso and reduce inflation is based on drying up the place of cash in circulation. The strategy is applied through a “zero fiscal deficit,” a policy imposed by the IMF (which coincidentally excludes debt service payments) and its practical effects are increased recession in most sectors of the Argentine economy.

    This is how the Macri government has “managed to calm markets after a tumultuous 2018:” By submerging the country in a deep recession.

    As a result, a government incapable of showing any economic results appears to be looking for other ways to galvanize the citizens in anticipation of the October presidential election, such as encouraging a happy-trigger police, fanning the flames of xenophobia, or by -- again -- blaming the previous government for its own failures.

    The story above repeats a government oft-repeated theme stating that “there are fears this could reverse rapidly if business-friendly President Mauricio Macri fails to win a second term in October’s general election.”

    This is precisely part of the government's propaganda machine. Macri is anything but. Companies, small, medium-size and even large are closing down at alarming rates with the exception of those generating and delivering energy, toll highway companies, banks and financial institutions -- all fields where family members or associates are strategically placed.

    But most of those in the know expect Macri government to still have some cards in the sleeve.

    We'll see.

    Feb 03rd, 2019 - 06:03 am - Link - Report abuse 0

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