Argentina Republic

Simply they rely on the U.S. dollar as a way of protecting at least in part, their savings. Not only observed a strong slowdown in economic activity in recent months in Argentina, also has begun to observe a sensitive deterioration in fiscal accounts. In the view of the Chief Economist of the Foundation for economic research Latinoamericanas (FIEL), Daniel Artana: the international situation and the mistaken decisions of the past spending all that income, generated the Government a shortage of dollars and some difficulty in the flat tax. For Artana, Argentina should continue with the exchange rate depreciation to adjust fiscal accounts: resources are not unlimited and therefore will have to adjust the flow numbers and that’s going to require a depreciation of the exchange rate. With the price of the dollar in the middle of the scene, the Central Bank of the Argentina Republic, must exit to calm the foreign exchange market by selling dollars, while its President, Martin Redrado, has to leave again and again to bring calm and a framework of predictability about the objective of exchange rate policy that will pursue the BCRA in the coming months. Thus, Redrado had ratified the policy of flotation managed exchange rate, in the framework of the Assembly of the IDB: ratify the politics of flotation managed, cushioning the processes of appreciation and depreciation.

It is the most appropriate at this time. Beyond the electoral timetable, it will have continuity before and after. At what level will reach the dollar to the legislative elections of June 28? The current scenario in the foreign exchange market shows strong demand for dollars, with a limited-time offer. Already there is speculation that the exporters (in particular, exporters of agricultural products), cannot be settled its currency until after the elections. Beyond the pressures that can be seen from the demand side, is a fact that the BCRA will not allow a sharp exchange rate depreciation.


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