Economy Minister Luis Caputo reaffirmed his commitment to the currency bands system at the annual Fundación FIEL conference, ruling out any dollar liberalization in the short term. Journalist Eugenia Muzio highlighted this firm defense in a Canal E interview, contrasting it with views from former ministers advocating free floating. Caputo stressed stability and plans to bolster the Central Bank.
At the annual Fundación FIEL conference, Economy Minister Luis Caputo delivered a speech that journalist Eugenia Muzio described as a 'firm defense of the currency bands system.' According to Muzio, in a Canal E interview, Caputo stated that 'they are not going to move the currency bands today, because the dollar is stable' and that 'the currency bands have a calibrated ceiling and floor, which is the best exchange regime for the current state of the Argentine economy.'
This stance contrasts with views from attending former ministers, such as Domingo Cavallo, Ricardo López Murphy, and Nicolás Dujovne, who 'insisted on exchange rate liberalization and that the government allow the dollar to float freely.' Muzio interpreted Caputo's message as an effort to convey stability and predictability to investors, economists, and business leaders, who 'left quite satisfied.'
Caputo also addressed reserves, clarifying that their accumulation is 'fundamental for the economic program, but it will be to strengthen the Central Bank's balance sheet,' not to meet debt payments or IMF targets. He mentioned tools like swaps with the United States and China, noting that 'the swap with China remains in place and could be used to meet financial commitments.' He further alluded to the possibility of securing 'about 20 billion dollars in bank loans from entities like Morgan Stanley.'
On inflation, the minister reiterated that 'next year inflation will converge to global inflation,' through fiscal and monetary discipline, with monthly rates between 1.5% and 2.5%. He avoided commenting on October's data, focusing on the medium term.