For the central bank, the problems of redemption of reserves are only “temporary”.

For the central bank, the problems of redemption of reserves are only “temporary”.

For the central bank, the problems of redemption of reserves are only “temporary”.

This is the view expressed during a meeting with foreign investors by his second vice-president, Jorge Carrera, who highlighted the improvement in the ability of the country to repay its external debt as an investment in the energy sector.

The problems currently facing the Central Bank (BCRA) in repurchasing reserves are “temporary” and stem from the specific moment that the Argentine economy is experiencing as inflation accelerates. Which led to “expected imports and at the same time export delays.” This is the vision that his second vice president, Jorge Carrera, presented today during a presentation to foreign investors.

The meeting, organized by the stock exchange XP Investments and coordinated by its director of strategies, economist Alberto Bernal, served to “sell” the official vision of the Carrera economy, which includes highlighting activity and opportunities. Open to him after a few years of lifting the weight of foreign debt.

The same view names many of the current complications – such as its high inflation – as diversions from the disruptive crisis it has faced in recent years and the costs it has to face in “transitioning to structural change”.

The official insisted on an “imported component” that exacerbated the “endemic inflation problem” in the country over the impact that rising logistics costs and the Ukraine war had on commodity prices. Ratified the commitment to the phased strategy, which the government agreed with the International Monetary Fund and was confident that inflation would be reduced “in the coming months and next year.”

“Monetary aggregates have stabilized and a plan to gradually reduce the fiscal deficit is underway. We predict that the economy will grow by 4.1% and maintain the goal of accumulating reserves with the International Monetary Fund, which will enable us to progressively reduce the quasi-fiscal deficit with repayable debt. “The central bank, which is at 8.3% of GDP, is still far from the 11% it achieved with the Lebaki ball and with a very different and less explosive lineup,” he said. Is now enabled.

He also referred to the “gradual stakes” in acknowledging the constraints imposed by the current inflationary inertia on the central bank to accelerate the devaluation of the peso or leave them in positive territory to increase domestic rates, which he has ratified. . “This is a careful game of balance,” he said.

Conceptually, Carrera made a firm commitment to convince those who listened to him of the opportunity that arose for the country as a result of renegotiating its foreign debt. Argentina has until 2024 to rebuild and improve its solvency. And that will undoubtedly improve, because by that time investments in the energy sector (he pointed to Vaca Muerta and offshore research) and mining (lithium) will start to mature. He pointed out.

He highlighted the contribution that Nestor Kirchner Gas Pipeline (announced again this week, though not yet in tender) will give a trade balance, given that it will allow it to “reduce overseas purchases and increase sales”.

“The conditions for the economy to take off are created because for the first time in several years there are no major external conditions and energy projects are underway that will allow us to finally overcome external constraints,” they hoped. In this regard, he reaffirmed his commitment to “simplify the capital movement control scheme” as long as the forecasts are met.

Source: La Nacion