Cavallo warned against an exchange if a triumph of Kirchnerism is suggested in the Paso

The former Minister of Economy, Domingo Cavallo, warned today that if the result of the OSPP primaries foreshadowed a possible triumph of Kirchnerism in the general elections of October, "it is possible that there is a currency race".

With a victory of the Front of all in the open primary simultaneous and obligatory (STEP) of August 11 "the chances of triumph will be accentuated" in October of the formula formed by Alberto Fernandez and Cristina Fernandez de Kirchner, "existed before or not, the Exchange and the inflationary explosion, "he said.

"The price of the dollar will increase everything needed to produce a liquidation of public and private sector debt in pesos," Cavallo said in an badysis column posted on his website.

If the PASO is won by the official Front Together for Change, "inflation will likely remain around 2% per month," said Carlos Menem's Minister of the Economy of Governments (1989-1999) and Fernando de la Rúa (1999-2001).

If Mauricio Macri-Miguel Ángel Pichetto wins the formula, it is likely that "the slow recovery of the economy will continue, the price of the dollar from 45 to 50 pesos for the rest of the year", has he declared.

With Macri's reelection, "growth opportunities while maintaining the deflation process are open for 2020," he said.

However, Cavallo cautioned that if "significant" changes in monetary policy are not made and no effort is made to eliminate the "anti-export bias", the economy will not progress further 1% and inflation will be less than 25% annually

"In this case, it will be very difficult for the government to obtain the popular and political support necessary for the complex pension and labor reforms that the IMF (International Monetary Fund) considers essential to maintain its program", said the architect of the law on the convertibility of the peso per dollar, which lasted almost eleven years, until its repeal in January 2002.