2023-04-28 08:30:00
The sharp rise in interest rates that the Central Bank decided sought remedy the delayed reaction of the organism, before a exchange run that pierced him part of the globe that Sergio Massa had inflated to ascend to his presidential candidacy. Almost in the opposite direction to his idiosyncrasies, the Minister of Economy got tired of half measures and ordered an increase in yields in line with inflationary reality. His electoral future entered alarm zone and now he clings to his political nose to put cold cloths on a market that gave him no respite.
The head of the Palacio de Hacienda managed, this Thursday, tame at $467 to the dollar bluefollowing having hit a burning ceiling of $500. Central Bank intervention in the market to push financial currencies back was key, but even so, the value of casual gained $74 compared to the beginning of April. The doubts in the economic team were read by the market, which put all its chips into anticipating a sharp devaluation that it expected in December or, failing that, following the PASO, if that open survey hits the ruling party hard.
Cristina Kirchner called for “arming together government programs”, questioned the IMF and dollarization
Massa’s order to the president of the BCRA, Miguel Pescearrived at 1:00 p.m. on Tuesday, following Cristina Kirchner make his anger known to the fifth floor of the Palacio de Hacienda. In a basic translation, the vice president made it clear that the agreement with the IMF was already history if it took place in devaluation the currency run that had begun two weeks before, and a consequent hyperinflationwhich implied that the candidacy of the Minister of Economy was going to be a voluntarist attempt.
In search of a candidate
The call for a dialogue table to align prices and salaries it was another joint initiative in between Cristina Kirchner and Massa. In her speech at the Teatro Argentino de La Plata, the vice president virulently criticized businessmen in the food sector, whom he accuses of being responsible for speculation on the prices of basic products. Exactly that sector of establishment local will sit down with the Minister of Economy, trade unionists and social organizations to define a price freeze that serves as a bridge until days before I STEP THEM.
“All measures are in consensus with Cristina”entrusted to PROFILE a source close to the Minister of Economy. He change in the political weight of the entourage who left for Washington to recalibrate, once once more, the agreement with the International Monetary Fund strained relations with the body that commands Kristalina Georgieva. At the last moment, and with the argument that they should be concentrating on maintaining financial calm in the country, Massa made the deputy minister get off the plane, Gabriel Rubinsteinand the chief adviser, Leonardo Madcur. A few hours later, Cristina Kirchner called the plan “inflationary” IMF repayment.
Cristina Kirchner and the currency run: “The agreement with the IMF did not allow the use of reserves to control it”
Massa seeks the support of CFK to his presidential candidacy, to deactivate the request for Alberto Fernandez to compete in the PASO del Frente de Todos. Over there will third the decision of the governorsto whom the Minister of Economy, together with his counterpart of the Interior, Edward “Wado” Of Peterwill meet this Friday in an act where the Irrigated Argentina Program will be presented, which will be concentric in the Palacio de Hacienda.
There will appear a counterpointfor now virtual, with the Tucuman governor, Juan Manzur. He last Tuesday, the former chief of staff predicted a Peronist candidate that emerged from the Interior from the country. He did so during his speech that he made in the framework of the launch of the harvest at the La Florida sugar mill, of the Los Balcanes Group, where he stressed that Tucumán is a province with no fiscal deficit and free of debt. In other words, He contrasted that reality with the financial uncertainties that that same day hit Massa head-on..
Of rates and sides in the BCRA
fish had resistedOne week before, a sharp rate hike and negotiated with Massa an intermediate point. The minister wanted to impose a shock in yields, but the head of the BCRA warned regarding its effect on financingwhich was going to limit productive activity and consumption. This Thursday, the Minister of Economy had not only given the order to take the leap, but also pushed it through his collaborators, who let the rumor spread regarding the increase that was finally imposed. Pesce had also already been convinced, but from the Palacio de Hacienda they tried to leave him in off side. Another play of attrition, which accumulates the relationship Massa-Pesce.
To calm uncertainty regarding the dollar, the BCRA Board approved a 91% rate hike
“Since last week it is necessary. The rate has to cover inflation to a minimum, otherwise, how are you going to protect your currency? Days before, another member of the small table of the BCRA had asked for prudence in raising rates. Today, those pleas were transformed into explanations: “We are very far from the high recontra rates of macrismo”, explained a source close to Pesce, taking into account the relationship between the cost of financing and the rate of inflation. With 91% interest, the relationship with price remarks is still in negative territory. Among the options was raising the rate to 1,200 basis points to beat the IPC, but once once more he decided on a strong, but intermediate path.
“Conversations are ongoing, seeing the effects on the demand for money and the discouragement of dollarization”maintained the consulted source, who also ruled out tensions within the BCRA Board: “There is policy coordination here. There are no sides imposing on others. There is an economic team that sees the problems, discusses paths and reaches consensus that is applied”. Even so, the looks of distrust and reproaches were sustained throughout Thursday.
AM / ED
You may also like
1682673220
#CristinaMassa #society #tenses #relationship #IMF #red #circle
