Argentine Government

Foundations had and many. Could be justified up to think about a possible crisis exchange rate, a little remote but possible to the end. It is that Argentina was in a context that in addition to capital flight, had to face fiscal problems (which not only have not reduced but probably have aggravated) with external markets closed to the country that the international reserves of the Central Bank that although they are protected by law, would not cost the Argentine Government too delete it were appetizing. To the above was added the additional weight that amounted him to demand both the small savers who were once again unwilling to lose all the saved and the opportunists who sought to take slice of the possible dollar tripped and gambled (and they even generated fears), to do so. Such was the situation affecting the Argentine foreign exchange market that the Secretary of domestic trade, Guillermo Moreno, (with privileges and power that go far beyond what would be its functions) using the recipe of the Venezuela’s Chavez, began to have barriers to the importation of some goods causing damage to the importers that very little could be done about it. But now the situation in the Argentine foreign exchange market has been radically reversed. If before the BCRA had to strive to avoid exchange-rate depreciation with real inflation risk, is now making greater efforts to sustain what is left of exchange-rate competitiveness. What did the Argentine Government to in so little time in this way change the situation in the foreign exchange market? It has actually done very little or nothing in particular, except promise to fix the problem of debt in default with the bondholders and the Paris Club over the necessary approach to the International Monetary Fund (IMF). Then he continued with his blindness, hiding the real situation of the economy through false statistics and generating a climate of permanent conflict and unpredictability.

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