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Government buying dollars does not cause inflation



The monetary policy implemented last year, diminishing weight, wants to reduce inflation. In this sense, it is the basic expansion goal. However, in January, January, the investment made by Central Bank in January made $ 510 million, with an investment of $ 19,021 million.

Amount of currency authority is below auto-imposed limits. But when the dollar rose up, the debate between economists began to show whether the purchase of dollars was inflation.

From the government point of view, it is not according to a central Bank source. "I mean, in the Argentinean context, avoiding the dangers of losing money in inflation. We want to go slowly but we're back at pace," he says.

When it was discussed among economists, he pointed out the lack of decisions, there are costs. "The matter is economically and socially mind-boggling, the BCRA did not participate in the exchange market, we would appreciate the heights," said the source.


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"In addition to being an important price for the economy, it is advisable to lower inflation more rapidly, but in Argentina there is a great deal of inertia, which has a highly appreciated path, the past has not worked this mechanism and, worse, it was confirmed a posteriori that the estimate was only temporary, creating a new source of inflation, due to the subsequent changes in the exchange rate, "he explained.

"What we choose is that the exchange rate recognizes inflationary inertia as a source of genuine appreciation and negative impact on negative economies and a source of subsequent instability," said the Central Bank's sources.

Guido Lorenzo, LCG, gives the program greater consistency with the dollar purchases. "Ex-ante contracts are negotiating an average of 35%, that is to say, with a policy that is so strict in monetary policy that it is incompatible with the policy, the result could be the highest inflation with fewer activities," he said. "If this becomes a systematic increase in the base, it can lead to expectations, but we are far from that scenario, in that case it would be better to appreciate the currency," he added.

Twitter, among others, was Daniel Artana (FIEL), Carlos Rodríguez and Federico Furiase, who did not start inflating the debate. Andrés Neumeyer (ex BCRA) and Alejandro Rodríguez, CEMA, are ahead.

Regarding this aspect, Alejandro Rodríguez recalled that Martin Redondo was in Central America, a similar situation, despite the fact that he had more currency purchases. "Later or later, the real variable adjusts, but it must be said that the operations that are taking place today are low in money," he said.

To Furiase, "the dollar does not say so in the lands of the intervention area, and the credit continues, the problem that the dollar is selling in dollars is not inflation, asking for money." And it is also the best of "all of the world" of the BCRA balance. Reasons? They are purchased under the non-revenue area of ​​intervention, the net reserves are recharged, and Leliqs is released by Loix.


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