Dollar: Cristina Kirchner’s skillet on bimonetary Argentina

In her letter “October 27. Ten years without him and one of the electoral triumph: feelings and certainties” Vice President Cristina Kirchner marked an important turn in the vision of the ruling party on the “most serious problem that our country has”: the economy bimonetary.

When focusing on the dollar issue and the tensions that it has been generating for President Alberto Fernández, the vice president stated: “The problem of the bimonetary economy is, without doubt, the most serious that our country has, it is impossible to solve without a agreement that covers all the political, economic, media and social sectors of Argentina “.

Thus, it opened a lifeline for the management of Alberto Fernández at the same time that it collapsed the theories of many officials that the dollar problem responds only to ill-intentioned and anti-Argentine speculators who want to overthrow the government.

In a display of pragmatism, he was reeling off that the problem with the dollar is not ideological (neither of the right, neither of the left nor of the center) and that it is not “a question of class either.”

At that point she added that “the dollars are bought both by workers to save or to make a difference that improve wages, as well as entrepreneurs to pay for necessary imports” for production.
Economy Minister Martín Guzmán and President Alberto Fernández. Photo: Reuters

Economy Minister Martín Guzmán and President Alberto Fernández. Photo: Reuters

On this concept, only Mauricio Macri, from the political class, would have dared so much. For Cristina Kirchner, the dollar stopped being a bad word or a concept worthy of evasion or sin to be a “reality and with it you can do anything except ignore it”

For the Government, a message was clear: the economy with two currencies, one, the peso, to make everyday purchases and another, the dollar, to save and carry out some operations such as real estate, does not work nor can it work without a broad political agreement.

Another message is related to the function of changing the ways of Kirchnerism that he attributes to the summons of Alberto Fernández and to make it clear that: “If I have something clear, it is that the decision-making system in the Executive Branch makes it impossible for it not to be the President who makes government decisions. ”

Cristina Kirchner shows her power, says that Alberto Fernández governs, that with the bimonetary economy Argentina cannot grow and assures that “we continue with the external restriction of that currency -or there is a lack of dollars or there is too much demand- to which is added one more that obvious devaluation extortion “.

The vice president makes her diagnosis on an issue that keeps many officials scared (who has she referred to as officials who do not work? Will there be officials from the economic area?) And her proposal is a great national agreement after insulting the opposition , to entrepreneurs and the media.

Could it be that the vice president calculates that there are four million people interested in buying dollars that without being able to do so at the official price and that this could translate into an argument against the ruling party in the next elections?

In fact, she highlighted that in her government they were able to buy up to US $ 2,500 per month in the first stocks and that with Macri the people could only access US $ 200 in the end.

The dollar plays in Argentina on all fields and impacts in all sectors. It is only enough to notice the action of the Minister of Economy, who with a difference of hours ensures that there will be no devaluation and achieved a large collection by selling bonds tied to the variation of the official dollar with the argument that this way the buyers will be safe from one … ..devaluation.

Martín Guzmán may think, then, the more successful the auction of these titles is, the fact that people believe little about the fact that there will be no devaluation.

In the market there are more now those who are betting that Alberto Fernández will not devalue even though they believe that the official argument of waiting until April for “the soy dollars to arrive” to strengthen reserves is somewhat naive.

In the Central Bank it is heard that the foreign exchange liquidations of the oil producers “are irregular” and that the demand of importers to pay abroad goes up by elevator. The level of liquid reserves that Miguel Pesce has is a mystery but they are certainly not abundant.

This month there was a notable drop in purchases for the monthly quota of US $ 200 and that greatly reduced the pressure on the hard and fast dollars that the Central has left.

In recent days, that demand was reduced to US $ 4 million per day, which will determine a sale of less than US $ 200 million throughout October. By August that sale had exceeded $ 800 million.

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