He minister of Economy, Luis CaputoHe estimated that there are USD 200,000 million in the one saved by the Argentines and reiterated that with measures that will announce in the next few days he will seek to start circulation to sustain the rhythm of economic activity. “Why not use them?”asked the head of the Palace of Finance.
Caputo participated on Thursday of the 11° Latam Economic Forumwhich was carried out at the headquarters of North Park In the city of Buenos Aires. During his speech, he said that the country is going through a moment of stability “unpublished in history,” said the first results of the government’s economic program and reaffirmed the decision to advance in the Reonicalization of the economyboth in pesos and dollars.
Caputo went to an audience made up of more than a thousand people, in an event organized by Research for Traders for beneficial purposes. Regarding the remumination, he described that today the financial system has very low monetization levels, which attributed to the design of the initial economic plan, which aimed to reduce the monetary base to avoid pressures on the dollar. As explained, this process must be gradually reversed to allow a sustainable expansion of credit and consumption.
“The economy is healthy. when the nominality lowers, the interest rate goes down, the demand for money goes up and that allows credit to be recovered,” he said. He stressed that the Reconetization It can be developed in pesos, if the dollar falls to the floor of the exchange band, which would enable the Central Bank to buy currencies and issue with support. It can also occur if banks stop completely renewing their public debt holdings and lend them again to the private sector.
On this point, he explained: “The banks begin to work for banks again. For years they took deposits and lent the money to the public sector. Now they find a better business to return to finance the private sector.”
Towards the end of his presentation, the minister said that he is also looking to boost a remumination in dollars. It was there when he pronounced the phrase that marked the tone of the speech: “There are USD 200,000 million in mattressesthen why not use those dollars that people already have?
Although he did not provide details, he said there will be ads in that direction soon. “We continue and we will continue in a extremely tidy macroeconomic context,” he concluded. After the closure of his speech, the director of Research For Traders Darío Epstein He made him, as a comment, that textile merchants from the Once neighborhood already work with dollars directly and asked if that will be generalized. “Yes, but with an invoice”Caputo said before retiring from the stage.
On the other hand, he estimated that “if the economy in the next 7 years, up to two mandates of Milei hopefully, it grows to 6% we will be able to lower taxes at a rate of 1 point and a half (from GDP) per year. It is the equivalent of returning to the private sector about USD 420,000 million in the next six and a half years. And if we grew at 8%, something feasible for an ordered Argentina, we could reduce to the reason for 2 points of the GDP. would be USD 550,000 million returned to the private sector. ”
In the first minutes of his presentation, he remarked that “last year I came here and I made some promises. Today it makes me happy that those promises have been fulfilled.” He then explained that the economy grows at 6%, wages recovered 15% in real terms and that “it was possible to get 10 million Argentines out of poverty.”
He stressed that the exchange rate remained stable compared to the previous year, which, he explained, makes a difference with the volatility that characterized the previous economic scheme. “We went from being the worst student to one of the best. I don’t say this, he said it Kristalina GeorgievaDirector of International Monetary Fundat the last G20 meeting, ”he said. He also cited the United States Secretary of the United States, who valued the course of the Structural reforms applied by the Argentine government.
Throughout his exhibition, Caputo insisted that “we never saw a situation like this”, and listed elements such as the absence of monetary issuancehe Fiscal surplusthe floating exchange rate and the accumulation of reserves as signs of a structural change. “We have a Centralized Central Banka firm currency and fiscal stability that allows you to think about the medium and long term, ”he said.
In that line, he said that the new economic model seeks to leave behind the stage of the “Miserable Argentina”, which he defined as a scheme of “very high real exchange rate, miserable salaries in dollars and protected industries“Caputo stated that” that model ended “and that the new goal is to win Competitiveness through efficiencynot due to impoverishment.
“The effort must come from the public sector, but also from the private sector, which has to invest again,” he said. He pointed out that the tax decline will be one of the government’s goals, and that this can be realized if economic growth is consolidated and the state’s expenses are maintained.
