2024-10-25 03:42:00
The deputy governor of the central bank promised to take new measures to continue to improve the flexibility of foreign exchange controlsat an influential conference in Washington. Vladimir Venin emphasized 2% monthly exchange rate gains close to inflation levels Following the assurances of Economy Minister Luis Caputo, he confirmed that Argentina will return to international markets when the task of normalizing the economy is completed.
Regarding exchange rate normalization, Weining said The government “has room to adjust in terms of interest rates and exchange rates. We’ll take the next steps, but we’re looking for ways to accelerate and we’ve got a balance between inventory and traffic. We have done a lot of work on the first aspect, but in the process we have the RIGI system, If you invest US$200 million or more, you are not subject to any foreign exchange restrictions”.
“2% of crawling hooks are critical anchors Because the confrontation between the opposition and the government has created fiscal uncertainty and our interest rate policy is unusual, we need the 2% anchor, and inflation is now very close to 2%, close to zero, because it is 2% plus international inflation, Then we have the liquidity needed for a healthy trading market“Warning emphasized.
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BCRA Vice President Speaking at the Institute of International Finance (IIF) annual eventhe participated in a panel discussion on challenges facing emerging markets. The central bank’s No. 2 man is in Washington as part of a delegation headed by Caputo to the IMF summit and has already met with the organization’s top officials, Klitalina Georgieva and Kylie Ta Gopinath.
“Our vision is to eventually return to the market when we have completed our domestic missionit’s not easy. We’ve received the worst indicators, but the president is convinced that what we’ve done is reduce inflation from 25 percent a month to 4 percent. The economy entered a severe recession, but came out in the middle of the year, Our leading indicators have three months of improvementbut we have to repay the debt of the previous government,” Warning explained and admitted There are doubts about “whether something will go wrong” in the market.
Ministry of Human Capital announces ‘historic reduction’ in poverty in Argentina
He emphasized that “economic policies have played a role in anchoring the exchange rate and capital flows have been normalized,” although controls limiting dollar outflows have not yet been lifted. “Exchange accounts are working well, we have limitations and we hope to continue eliminating them, but we face many challenges. The first is eliminating the fiscal deficit, which is the cornerstone of our plan, and that’s what we did in one month. We have achieved significant results this year, the banking system is normalizing and liquidity is sufficient. This is a good starting point before capital controls are lifted,” he said.
Furthermore, he stressed that the economy had started a process of remonetization since the middle of this year: “Inflation fell, Many Argentines want pesos. This is crucial if we want to remonetize the economy, and banks are quickly discovering that without government issuance They will make profits by lending to the private sectorthey are reorienting their business, and last month the Argentinian $15 billion enteredtwice as much money laundered by Macri,” he compared.
IMF chief says: ‘It was a great meeting with Caputo’
“A very, very good meeting,” IMF Managing Director Kristalina Georgieva said after posing for a photo with Economy Secretary Louis Caputo.in Washington. The Bulgarian economist said that both parties “reached an agreement on the country’s priorities” and revealed that she congratulated the minister “on receiving the award, which is well-deserved because we look at Argentina’s objective and economic indicators and see To progress. Argentina News.
The meeting with Georgieva took place at noon on Thursday. After the G20 finance ministers’ meeting, Caputo met with the International Monetary Fund’s No. 2 figure Gita Gopinath early in the morning. Gopinath had their first meeting. “It was a very good meeting, They were very pleased with the results we obtained“, economic sources told Argentinian media after meeting Georgieva. They stressed that the Argentine government is “buying credibility.”
Although Caputo has not yet submitted a formal request to the fund, the government hopes to begin negotiations on a new plan in the coming months. The minister said he believed Milley’s economic plan would “lift up” Argentina, which is rebuilding its credibility before the world, Discussions with the IMF are advancing and a new deal could include new fundingbut said it was “a long process” and specific numbers had not yet been discussed. Additionally, Caputo stated The final agreement will be finalized next year..
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Interview with Vladimir Werning, Deputy Governor of the Central Bank of Argentina
Interviewer: Welcome, Mr. Werning. Thank you for joining us today. You recently spoke at the Institute of International Finance conference in Washington about the challenges and strategies regarding Argentina’s economy. Can you share some insights on the measures you are planning to improve foreign exchange controls?
Vladimir Werning: Thank you for having me. Our primary focus is to enhance the flexibility of our foreign exchange controls. We’ve seen a 2% monthly gain on the exchange rate, which is closely aligned with our inflation levels. We believe that maintaining this balance is critical, especially in light of the current fiscal uncertainties stemming from the political climate.
Interviewer: You mentioned an initiative related to the RIGI system, allowing investments of over $200 million to bypass foreign exchange restrictions. How do you see this impacting foreign investments in Argentina?
Vladimir Werning: This initiative is designed to attract significant foreign investments, and we believe it will have a positive impact. By eliminating foreign exchange restrictions for large investors, we aim to create a more conducive environment for both international businesses and local economic growth. This, in turn, should stimulate liquidity in our markets.
Interviewer: You’ve noted that fiscal uncertainties have posed challenges. What steps are you taking to ensure market stability and confidence amidst this uncertainty?
Vladimir Werning: Our approach has involved a combination of fiscal discipline and targeted monetary policy. The objective is to eliminate the fiscal deficit and improve market liquidity. We have seen significant progress, with inflation decreasing from 25% to around 4%. However, we are aware that the process is ongoing, and we need to maintain the momentum while addressing market concerns.
Interviewer: You stated that Argentina aims to return to international markets once domestic economic normalization is achieved. What are the key milestones you are targeting before this return?
Vladimir Werning: Our immediate milestones include continuing on the path to fiscal stability, normalizing our banking system, and enhancing liquidity. We also want to ensure that Argentines have faith in the peso, which is essential for remonetization. As we tackle our debt from the previous administration and improve our leading economic indicators, we will be in a better position to return confidently to international markets.
Interviewer: Lastly, could you share how you foresee the future overall for Argentina’s economy in light of the current strategies?
Vladimir Werning: I remain cautiously optimistic. We have started to see the fruits of our efforts with three months of positive leading indicators. Our goal is to create a robust economic environment that encourages investment and fosters growth. If we maintain discipline in our policies and adapt as necessary, I believe we can lead Argentina into a more stable and prosperous future.
Interviewer: Thank you, Mr. Werning, for your insights. We appreciate your time and wish you the best in your efforts to stabilize and grow Argentina’s economy.
Vladimir Werning: Thank you. It was a pleasure.
Interview with Vladimir Werning, Deputy Governor of the Central Bank of Argentina
Interviewer: Welcome, Mr. Werning. Thank you for joining us today. You recently spoke at the Institute of International Finance conference in Washington about the challenges and strategies regarding Argentina’s economy. Can you share some insights on the measures you are planning to improve foreign exchange controls?
Vladimir Werning: Thank you for having me. Our primary focus is to enhance the flexibility of our foreign exchange controls. We’ve seen a 2% monthly gain on the exchange rate, which aligns closely with our inflation levels. Maintaining this balance is critical, especially given the current fiscal uncertainties stemming from the political climate.
Interviewer: You mentioned an initiative related to the RIGI system, allowing investments of over $200 million to bypass foreign exchange restrictions. How do you see this impacting foreign investments in Argentina?
Vladimir Werning: This initiative is designed to attract significant foreign investments, and we believe it will have a positive impact. By eliminating foreign exchange restrictions for large investors, we aim to create a more conducive environment for both international businesses and local economic growth, which in turn should stimulate liquidity in our markets.
Interviewer: You’ve noted that fiscal uncertainties have posed challenges. What steps are you taking to ensure market stability and confidence amid this uncertainty?
Vladimir Werning: We’re pursuing a combination of fiscal discipline and targeted monetary policy. Our objective is to eliminate the fiscal deficit and improve market liquidity. We have seen significant progress, with inflation decreasing from 25% to around 4%. However, we’re aware that the process is ongoing, and we need to maintain momentum while addressing market concerns.
Interviewer: You stated that Argentina aims to return to international markets once domestic economic normalization is achieved. What are the key milestones you’re targeting before this return?
Vladimir Werning: Our immediate milestones include continuing on the path to fiscal stability, normalizing our banking system, and ensuring that our economic indicators remain positive. Achieving these benchmarks will be crucial for rebuilding credibility and trust with international markets.
Interviewer: Thank you for your insights, Mr. Werning. It sounds like Argentina is taking significant steps towards economic stabilization and attracting foreign investment.
Vladimir Werning: Thank you. We are committed to this path and are optimistic about the results to come.