The Government seeks to minimize the impact of the new exchange rate measures on INFLATION

The Government came out to minimize the possible impact of the new exchange measures announced by Sergio Massa, by assuring that “there is no reason” for a new trigger in the inflation rate to occur.

The chief of staff and candidate for vice president of Union for the Fatherland (UxP), Agustín Rossi, spoke on Monday about the agreement with the International Monetary Fund (IMF) and defended the measures to stop the drain of reserves from the Central Bank (BCRA), which include the “unification” of the solidarity dollar and the card, an increase in taxes on imports and a new exchange rate for agriculture at $340.

Also read: Larreta criticized the Government for the economic measures after the preliminary agreement with the IMF: “Enough of the patches”

“The measures have to do with rebuilding the reserves. Some are active and others passive. The agricultural dollar, for example, tends to generate more sales. And imports that are not absolutely necessary will be postponed,” Rossi said in statements to Futurock.

Asked about the possible impact of the measures in an inflationary context, Massa’s running mate opined that “there is no reason for the price of the dollar to translate into prices.”

Agustín Rossi, Sergio Massa’s running mate. (Photo: Reuters)

“We will work together with the Ministry of Domestic Trade, because what we are doing is adjusting foreign trade policy. The products in the basic basket do not have any type of modification, so absolutely nothing should happen. This is not the time for some of the living to appropriate everyone’s effort, ”he added.

Regarding the terms of the new agreement with the IMF, the official assured that the Government was able to “impose its gaze”.

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“The Fund has the same recipe for all the countries that have debt with them. What we have been telling you is that Argentina does not have an economic crisis, but a crisis in the balance of payments. This is not the product of management but of an external fact, which is the drought. The situation is transitory, for four or five months, until the fine harvest begins,” he explained.

And he closed, in that line: “That we do not have more reviews until November or December removes the Fund from the electoral process. There is not going to be any black swan and that is beneficial”.

Also read: The Government implements measures to advance with the IMF and monitors the next steps of the agreement

Although this Sunday the multilateral organization recognized that a “principle of agreement” was reached, that is, that the “central objectives and parameters that will be the basis for a technical agreement” were agreed, the instance must still be closed.

At the Palacio de Hacienda they estimate that the technical terms of the understanding will be finalized on Wednesday or Thursday, then it will be sent to the executive board -the body’s board- which must give the go-ahead to then definitively approve the review and trigger the agreed disbursements, the amounts of which are still unknown, as well as the modifications in the established goals.