Sandleris warns: the issuance of pesos in December could be less "generous" than the agreement with the IMF

The expected monetary expansion for December may not be as generous as initially agreed with the IMF. This was clarified yesterday by the President of the Central Bank, Guido Sandleris, in the closing speech delivered at the meeting organized by the Council of the Americas at the G20 summit.

"Just as we exceeded our monetary base objective in recent months, we could do the same in December if we felt that the increase in money demand was not what we expected."badured the official.

The agreement with the fund sets a goal of zero monetary expansion, but it becomes much more flexible in December. For next month, the increase is expected to be 60%, which involves the injection of an additional $ 70,000 million into the market. This is due to the fact that at the end of the year, the demand for money is increasing because of the need of companies to pay salaries, a half-bonus and now also the bonus.

Sandleris wants to show a sustained behavior of the plant in the control of monetary aggregates. The goal is very clear: avoid the sudden jumps of the dollar while lowering inflation.

The movement of the currency, which increased by almost 10% from the floor at the beginning of the month to about $ 40, led to greater hardness on the part of the BCRA. It has absorbed more than $ 60 billion over the last two days to stop the escalation of the exchange rate. Of course, indirectly, it also slowed the reduction in the Leliq interest rate, which was now slightly above 61%.

The head of the BCRA was satisfied with the result obtained with the launch of the new system of monetary aggregates. And he announced that the "high frequency indicators" are beginning to show a drop in inflation in November. It is estimated that this month's index will be slightly below 3%, nearly half of that recorded in the previous two months.

In addition, he also pointed out that the most competitive exchange rate allowed the country to obtain in September "the first trade surplus in 21 months".

"There is still a lot to do. This central bank – concluded Sandleris – will be very cautious in the coming months, aware of the risks to which its economy is exposed. We will increase the monetary base if conditions permit. "