Why the market is afraid of Alberto Fernández and as the dollar goes up

The markets have clearly evaluated the results of the STEP. Confirmed the victory of Alberto Fernández against Mauricio Macri, began yesterday with a collapse of the national currency, which closed at $ 57.30, and shares of Argentine companies listed on Wall Street have recorded falls up to # 39 to 62%. The complications continued today, when
the dollar has reopened and has again exceeded $ 60 in some banks.

In addition to being closely badociated with the figure of former President Cristina Fernández de Kircher, the statements of the Front of All candidate on the main topics of the economic agenda – which
THE NATION Review this note – they did not cooperate to make their victory welcome by the financial world.

Leliq's interests

"
We will stop paying Leliq's interest [letras de liquidez del Banco Central] Argentina pays every day, "Fernandez said in an interview with Roberto Navarro in July, and explained how he would fund the promised 20 percent increase.

In an interview with LN +, he stated that he had never said that he was considering "defaulting" on interest on the letters already issued, but that he considered that the Rates were excessive. He argued that we must change the logic of the Argentine economy, "reverse the trend and move from this speculative system to a productive system". "Whoever puts on Leliqs earns a lot of money and whoever has to invest does not have credit and can not do it, so companies close," he said.

Pension reform

All the blocks that make up the Front of All in Congress voted against the 2017 pension reform, which changed the method of updating pensions and pensions, the family wage, the universal child benefit ( AUH) and other social benefits. .

– Can you imagine going back to the previous formula? –
Alberto Fernández asked this diary in an interview.

-Je think about reviewing this. Of course I can imagine it. Retirees are in a critical situation.

The rates

Fernández anticipated that, if he would badume the presidency of the Nation, he would proceed to the pricing of the tariffs. "This is not reasonable an economy where only tariffs are dollarized and that the rest of the economy is not," he said, without however stating that he was not going to pay for it. he would also decide to freeze them.

Dollar to stocks

While the presidential candidate of the Front of All promised that the restrictions on the purchase of foreign currency would not come back, he said that "the solution proposed by Mauricio Macri to the problem of lack of dollars was much worse than the actions".

"Argentina periodically has a problem that is the lack of dollars," he said in a statement.
interview with LA NACION-. With stocks, you keep the dollars, but prevent them from entering. Macri had the same problem and solved it the worst way, by taking on debts. When comparing the two solutions, stocks seem better. It's harmful, but much less harmful. "

Price in dollars

"That's not the price of the dollar," Fernandez said at the end of June, while the retail dollar accounted for about $ 43.7. "They make us live with a cheap dollar, which escapes permanently to Argentina, and we are paying back exorbitant rates that prevent the development of Argentina," he said, while avoiding to pronounce on the value that the dollar should have.

Whatever it is, he admitted that "the dollar will evolve inexorably" and anticipated that in the futures market, he was supposed to close the month of December with a 25% more expensive dollar. "It will not last long," he said then.

Agreement with the IMF

In dialogue with
THE NATION, the Peronist candidate said that the agreement between the government and the IMF "was not respected" and encouraged the idea of ​​revising it. "In addition to setting very difficult deficit targets for 2020-2021, the agreement provides for reducing unemployment and poverty and for growing the economy.All is broken, debt has increased, poverty Macri and the IMF know that it is not enforceable, "he said.

"With the IMF, you can not renegotiate because the rules of the Fund are very strict," he added. "Half of Macri's debt is from the Fund and the other from private creditors, and we may be able to refinance part of this debt with private creditors. We can not comply because Macri imposes on us, at the price of a paralyzed economy, where people get poorer every day, "he added.

The situation of Venezuela

"We must all ask Venezuela and Nicaragua to have fully functioning democracies, and I am categorical",
Fernandez said last May, but it did not take long to clarify it. "We are not either what we should say what a country has to do on the inside, I am very critical of Maduro, but I am more critical of opponents, who have unable to build an alternative, American countries can not do what we criticized the United States ".

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