Despite Superminister Sergio Massa's announcement that he would not moot for a devaluation of the Argentine peso, banking entities have issued separate reports raising doubts as to the newly-appointed official's strategy, with the spotlight on the exchange rate issue.
“The only thing that devaluation shocks produce is poverty,” assured Massa upon taking office. The same Massa who had denied he would be appointed Minister of Economy, Agriculture and Production, just hours before it was announced officially.
Massa's announcements lack, once again, the encouragement and consistency required by the current challenges, falling far short of what a stabilization plan would require in the current serious macroeconomic situation, according to JP Morgan.
Argentina's international reserves closed Thursday at US$ 37,332 million, 486 million less than Wednesday. And since Massa's announcements were focused on strengthening reserves, international and national consulting firms began hearing noises instead of melodies.
In our opinion, the announced measures are a positive step, but they do not address the root causes of the main structural macroeconomic imbalances. Furthermore, the absence of any measures or announcements to address the increasingly overvalued and tightly controlled/managed exchange rate is notable, a Goldman Sachs report reads.
Details are missing, the economist Christian Buteler told BAE Negocios.
Massa is still to meet with agriculture exporters to keep working on a mechanism whereby hard currency can reach the Treasury's coffers.