The former Minister of Finance of the macrismo warned that the next Government “must correct the exchange rate”, but carry out a strong devaluation”
By iProfessional
17/03/2023 – 11,05hs
The former finance minister of macrismo Alfonso Prat Gay, warned that the next government “must correct the exchange rate”; although he considered that the conditions are not right for a strong devaluation in a more complicated situation than in 2015, with many more pesos and fewer dollars in the Central Bank.
In addition, the economist remarked that “every time in Argentina there was stocksthe situation worsened” and highlighted that “it has been shown that the trap is a disaster and of course the trap must be removed, but I don’t think it can be done from one day to the next this time”, recalling that it was the acting minister when the limitations were lifted in 2015.
In statements to radio Miter, Pray Gay also stressed the need for this type of measure to be taken within the framework of a coordinated economic and poetic program and with a lot of dialogue with the opposition since “the good proposals that a political party can have later are not sustained over time if the economic agents do not believe that they are going to be sustained.”
“The next president has to sit down to negotiate with what is left in the opposition. I want to believe that Kirchnerism ends but Peronism subsists where there are more rational figures and we must dialogue with them,” he added.
lack of consensus
Regarding the lack of consensus between the ruling party and the opposition, he said: “We have to cut with that dynamic. It’s been decades of that dynamic and that led us to this decadence, poverty, young people leaving; In any corner of the country the problems are the same and people don’t give more. There is an awareness of the need for change and if there is a leader who can capture that and explain to society the path to stop decadence, there will be a lot of support,” he anticipated.
He also highlighted the clabor, lithium, oil and gas cLike the great opportunities of Argentina. “Gas is a good example, Argentina should already be exporting gas. This government took two years on the gas pipeline, which it named after its spiritual leader and I don’t know why it didn’t move forward with that,” he said.
Prat Gay: “I don’t think the stocks can be removed from one day to the next this time”
According to the calculations, an energy account that last year was negative in US$5,000 would become a positive account of US$15,000 million. “Argentina’s problem is not the shortage of dollars, it is the lack of common senseno,” he said.
“Argentina has always been the Argentina of contrasts; at this moment the tragedy of the present coexists with the opportunity of the future. It is difficult to look to the future because the tragedy of the present is total. The basic basket rises 10% in one month. It’s an absolute disaster. The only time there was higher inflation was 30 years ago, in the midst of hyperinflation. What remains ahead is that, respect for how we can get worse. It is a government that has no intention of improving things,” he said.
Opportunities in Mining
“With a new government, it is possible to leave behind the tragedy of the present. You have to sit down and discuss with everyone. In a country with 50%, you cannot focus exclusively on the environment. You have to attend to the environment, but there is also a generation that is becoming impoverished day by day,” she warned.
And he gave as an example that a typical household requires $180,000 per month of income to not be poor while the average salary is $100,000. “Everything points to the end of the mandate of Alberto Fernandez poverty is going to be 50% when they assumed 35%. It is the great challenge that lies ahead,” he reflected. Then, he stressed that there are many economists in Together for Change working on different plans and anticipated that after the PASO these teams will be integrated and coordinate a common program.
“The mistake in the first management of Cambiemos was not explaining why it was necessary to take these medicines today because in a few years we will be better. The program does not end with the economic, the advantage is that society has already realized that this model is exhausted and does not allow for more,” he explained.
