Caputo said that he sends the IMF | The former central banker …

"It's not that there's a phenomenal dollar demand problem, it's that when nobody sells, it's one of the discussions I've had with the fund, the market is not sold with 1000 million euros but with 10 million dollars. Because someone puts a price on the screen, we are afraid, we buy and we make a sensation. Be careful with this because it does not matter to the Central Bank to devalue its currency by 5 or 8% per day with $ 5 million, "said former Central Bank chief Luis Caputo, who publicly revealed the discussions he had had with him. with the bureaucracy of the International Monetary Fund while he was in charge of the monetary entity and ensured that "the IMF has driven me out". This statement shows the subordination of the government of Mauricio Macri to the orders of the agency.

Caputo reappeared as he was not responsible for the loss of more than $ 10 billion in reserves and an increase in the currency from 28 to 38 pesos in the short term at the Central Bank. He gave a lecture at the Buenos Aires Stock Exchange with the former Deputy Minister of Economy of Cristina Fernández de Kirchner and one of the consultants of Alberto Fernández, Emanuel Alvarez Agis. There, he said that "the Central Bank can not get out of those illiquidity sinks that can even be done intentionally. Anyone bought on the futures market sees an offer on the spot foreign exchange market and says that I buy it. Futures are skyrocketing and charging for everything that is purchased in futures. "

"In August, I told the Fund, what would austere monetary and fiscal policy be if I let the dollar go to 85 pesos? Obviously, it will have an impact on prices. What is the point of setting the rate at 70%? In the end, all I'm going to do is drown the economy and not reduce inflation because my exchange rate policy is lax. I have to have a coherence between the different policies, "added the former head Macri who, before arriving at the Central Bank, commanded at the Ministry of Finance one of the most accelerated debts of the History of Argentina. That's for example who designed the 100-year bond.

A few minutes earlier, Alvarez Agis had also questioned the position of the Monetary Fund. "We ate 33 percent of the devaluation with the IMF pbad," he said, which then motivated Caputo's thanks.

"I want to thank Emmanuel for saying better than anything I could have ever said. I fought so hard to explain what they had told me in a moment: "Look lean, stop, go, we can not stand it anymore." It was not that I did not try to convince them, but I could not and I had to go, "said Caputo, who thus clarified who had defined economic policy since the beginning of the year. last year.

To avoid taking this statement as a critique of current economic policy, he added, "Today we have this coordination. For the first time, there is consistency between fiscal policy, monetary policy and exchange rate policy. You must know how to use them. Therefore, the exchange rate should not be a problem, "he said, although between Monday and Wednesday, the US currency went from 47 to 60 pesos.

The former head of the plant then badured that "that does not give us that we have this crisis. If we take it in a crisis, it's because we want to take it, politicians, people. The current economic situation of Argentina does not deserve the kind of crisis that some are observing or preparing for. If we saw that we were in 2001, well, it was half inevitable, the thing was really complicated, but in the current situation, it would be a self-inflicted crisis. From a fundamentals point of view, it is not up to us to have this crisis. If we politically turn this into a riot, we are fools on both sides. "He also said that" the level of the exchange rate is quite reasonable.We are at the highest real multilateral exchange rate of the last ten years, and no one can say today that ". it's a type of change that has fallen behind. "

Agis has also come to support the current exchange rate. "This kind of real change is left behind, this type of real balance change and the thing has to stay here because it is unstable. We will turn a liquidity problem into a solvency problem and this is only the case with stupid people. When you can not pay the card and you have to come to a friend's house and say "do not stop, pay with the current account". All we need to realize is that everyone understands that for politics, this type of change is appropriate, he said, before adding, paraphrasing Keynes, "this type of change is left as long as politicians do not remain irrational longer We can remain solvent.

To justify that it 's a balanced exchange rate, Caputo highlighted the differences with the dollarization process that occurred last year. "You also have to look at what stage of the dollarization process the market is. It's crucial. This is not the same problem we had in May or June, where the excess demand was $ 1.5 billion a day, the problem of the plant, which is a supply problem. When this type of problem arises, the market is repressed and nobody sells, "he said.

Agis also coincided at this point with Caputo, which helped bring tranquility to the public. "It seems to me that a good commitment to try to articulate is to defend 60 pesos, but we do not buy 52 or 45 pesos. 45 pesos we can not buy anymore. We do not buy late. Neither now nor me in the future. Alberto said on Wednesday. He said that what the Central Bank is doing seems reasonable to me, because at the end of the day it has reservations. It sells diagonally. He did not put the famous wall and the wall was removed. If the Central Bank deals with the reserves, it takes care of the reserves until the next president, because the profit-sharing is reversed. The motivation is to leave him without reservations. It seems to me that this type of change is left behind if the policy is based on reasons. If the policy does not go in the motives, it is not enough and I do not know where we are going, "he added.