Juan Nápoli argued that there is a power vacuum with a long time to go before the elections. Why don’t you rule out hyperinflation?
By iProfessional
16/05/2023 – 13,49hs
He head of the Securities Bank, Juan Nápolimade a harsh diagnosis of the economic situation of the country in which, with a long time to go before the elections, there is a sort of power vacuum that generates a spiraling rhythm of rise in the general price level and the possibility of hyperinflation.
“I do not rule out hyperinflation. What is seen is a spiraling, and spiraling occurs when you have uncertainty and you have conflicts. So I do not rule it out, many are talking about double digit May. The truth is that I don’t know, but I couldn’t rule it out,” she said.
In statements to Radio Mitre, the businessman from the financial sector recounted his participation in a lunch with the candidate for president Javier Milei and 150 businessmen.
“I do not rule out hyperinflation. What you do see is a spiraling, and spiraling occurs when you have uncertainty and you have conflicts“, he pointed.
“Lunch was very pleasant, listening to Milei in line with what he has been saying for a long time. I think that his great virtue – like any politician who is in the campaign – is having got the speech right. A tough speech in a complex situation “He is very clear about what he has to do. Then there is the question of whether he can do it, obviously, but the ideas are very clear and very forceful,” said the businessman who is also the manager of Club Atlético River Plate.
“I really like a phrase that is not his, that I once heard from Governor Schiaretti that it is all the possible market, all the necessary state,” he said.
According to the head of the Banco de Valores, inflation in May could reach double digits
Economic situation and jump of the dollar
Asked about how he evaluates the current economic situation, Nápoli did not hesitate “Mal”, he said.
“We are in a delicate situation where it is very difficult -due to the political landscape- to generate certainty and where the focus is on an election that is a long time away. Sorry, to a poll, not to an election, “she said in reference to the PASO of August.
“We are always thinking about where we are going, to March, to the summer, to the election. All this without fundamental measures and the situation becomes more and more difficult. And in a very complicated political landscape, a kind of power vacuum in the that no matter how much you have an ace of spades, you cannot solve the thing”, he commented.
Regarding the exchange rate turbulence that dominated the last weeks of April, and movements that led the free price to rise $9 to reach $483, Nápoli considered that the currency gains are the result of monetary instability.
“The problem is not the dollar, the dollar is one more price in the economy. The problem is that if you have high inflation you cannot continue to suppress the price of the dollar with the goal, the goal, many talk about avoiding a devaluation, I talk about avoiding an abrupt jump in the exchange rate,” he said.
