Martin Redrado, criticism: "I'm not sure to save the field"

The economist and former chief of the central bank Marín Redrado Argentina talked about the economic situation that the country is going through. For him, the crisis "is solved with more dollars" at the same time he badured that "It's not sure the field will save us", compared to the arrival of funding that indicates if necessary.

He also led the Capital Foundation, started the conversation with National Radio, in the program of María Laura Santillán, speaking of the last movements of the dollar: "The germ of the dollar was rising rates of exorbitant interest and encourage the entry of swallowing capital, "he said.

The rate has exceeded 62% but the dollar has also increased

"The interest rate has not been reached because it is clearly insufficient, to appease the rate of inflation. in February, many swallow capitals have decided to retire and they stayed with a very big dollar gain because they let the exchange rate go back, "said the specialist. Decision that he reported as "a recurring error".

"If you increase the exorbitant interest rate, you attract short-term dollarsbut as soon as the losses, those dollars are gone. Bread for today, hunger for tomorrow, "he summed up, and he was active in research to solve it:"The way to solve it is with more dollars. You must show certainties how will the supply of foreign exchange be presented: the government has two branches to support one is the IMF and the other is the agricultural sector ".

"You have to sit down with the agricultural producers to export regulations schedule", said Redrado as a central factor.

"I'm not sure we're saving the field – said the economist about the entry of foreign currency into the country -. There is a question mark on how much will be settled"To which he added:" When the dollar moves, the farmer keeps the harvest until it is clear. If the dollar goes up every day, it will not sell if your price is in dollars.

The recurring problem of the country, in which interest rates rise to try to contain the dollar, but it works for short periods, for the economist "is solved with more foreign exchange offer" . "You have to get out of this trap by showing that you have money enough to supply the market and show confidence, "he said.

Inflation figures could hit the central bank

Where does the money come from? "Reserves can not be affected because that is the program you have with the fund.You have to work with the dollars that come to finance and who are willing to pay off debts," said Redrado. He added: "What I mean is that these currencies serve not only to pay the maturities in dollars but also the maturities in pesos. That's what I add as a short-term solution"

At the end of the conversation, he presented a slightly harsher critique of the current management: "The government does not have today, nor the economic team, the ability to lead this intellectual struggle in terms of intervention on the foreign exchange market because he has already signed this agreement with the IMF in October ".

BCRA uses everything to defend the peso, the worst performing currency

"The government has already been limited to having an inert central bank facing monetary stress and has kept the interest rate instrument.I would have done things differently. ", did he declare. And he concluded: "What I propose are solutions to restrictions that you already have. I would like to play Real Madrid or Barcelona, ​​"he said, citing freedoms and the ability to act," but I play Independiente. "

DyR