Martín Redrado warned that the Central Bank does not have reserves “not even to cover a month of imports.”

Martín Redrado held this Sunday a detailed description about the situation of the Central Bank regarding foreign exchange reserves. The former president of that entity warned that the current status is “emergency” and that “if a strong signal of a stabilization and growth program is not given, things can be a bit more complicated.”

We don’t have enough backs to meet our commitments in the first quarter and not even to cover a month of imports, what is needed to produce in our country “, he analyzed in dialogue with LN +.

In turn, Redrado estimated which would be the three variables that should be targeted to increase the supply of dollars: “a comprehensive economic plan, a team that has the consistency and solvency to have convergence of all economic variables and, given the credibility crisis in our country, laws that are supported by special majorities, at least two-thirds of Congress.

In that sense, he considered that in our country the opposite path was “chosen” to the one indicated. “It is believed that by managing or prioritizing it will be possible to have a better rationalization of dollars but reality shows that they are going with less and less dollars,” he remarked.

Travel abroad: “There was room for other things”

For Redrado, the government did not make the best decision when deciding to eliminate the possibility of paying for trips abroad in installments.

“When one has a crisis situation it is necessary for the monetary authority to transmit calm, tranquility and firmness. It is the complete opposite of what you are doing now, that conveys despair, improvisation and running after events”, He analyzed.


For Redrado, the Government “transmits despair, improvisation and running after events” Photo Guillermo Rodriguez.

On that point, he questioned whether it is thought that with “200, 300 million they can solve the Argentine problem.” “Before, we would have to be more creative and look for the solution to the problem of the crisis to change comes by stimulating the supply of foreign currency “, he remarked.

“As long as demand continues to be repressed, we are on the way to more restrictions and an exchange gap, which is what marks the distortions in the Argentine economy,” he added.

He also specified that “there is a bad practice of exchange policy, before and after the election.” “Before, it was clear that you cannot carry the exchange rate, devaluing it to 1 percent and base inflation, 3 percent. That is inconsistent in time, “he stated.

“When the election ends, just last Friday, the official dollar was devalued 0.12 cents. If that were the devaluation rate and you extend it in the month, only two weeks later it will devalue 2 percent, when inflation it is still above 3 percent, ”he explained.

Redrado considered that "there is a bad practice of exchange policy". Photo by Juano Tesone Redrado considered that “there is a bad practice of the exchange policy”. Photo Juano Tesone

Anyway, beyond all, Redrado made it clear that he sees a possible north. “You can get out of this, what you do not have to do is insist with the same thing. We have been with this for a year and a half and each time we have fewer dollars, “he said.

Finally, he spoke about the negotiations that are being carried out to reach an agreement with the IMF for the payment of the debt. “Argentina has a long history with the Monetary Fund. I hope that we do not end in an agreement that is not more fiscal and exchange adjustment, but rather an agreement made in Argentina by Argentine economists, and then be validated by the Monetary Fund “, he completed.

By Editor

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