Sunday , August 14 2022

Sandleris warns: Pesos may be less "generous" than December deal with IMF



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The anticipated monetary circulation in December may not be generous as agreed with the IMF. Yesterday, the head of the Central Council Guido Sandleris, speaking at the meeting, the American Council was organized within the G20 summit.

"If we reach the goal of the monetary base in recent months, and if we consider that the growth in demand for money is not our expectation,, the official representative assured.

The Fund has set a goal to align the currency with zero, but it will decline significantly in December. The next month, the growth could be 60 percent, which would add to the market an additional $ 70,000 million. At the end of this year, demand for money grows due to the wages of the companies, half the bonus and now the need to pay for the bonus.

Sandleris wishes to point out the Center's continuing commitment to the control of monetary aggregates. The goal is very clear: avoid the sharp jump of dollar and at the same time avoid inflation.

At the beginning of the month, the currency movement, stretching roughly 10% from the floor to about $ 40, caused the BCRA's hardship. Over the past two days, $ 60,000 million has been allocated to stop the exchange rate growth. Of course, it has become indirectly a brutal reduction of the Leliq interest rate, which is currently slightly above 61%.

BCRA's head was satisfied with the outcome of the debut scheme of the new money aggregates. And he announced it High-frequency indicators indicate a drop in inflation in November. It is assumed that this month the index will be below 3%, half of which are registered in the past two months.

He also noted that the most competitive exchange rate would allow the country to arrive in September "First Commercial Profit for 21 Months".

«There is more to do. This is what the Central Bank – Sandleris concluded – in the coming months will be aware of the threats to its economy. If so, we will increase the monetary base ".

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