The Cordoba Stock Exchange released a statement showing its concern with the latest measures that were announced by the Ministry of Economy led by Sergio Massa “The measures are minimal patches that increase the tax pressure and are far from resolving the phenomenal distortions in relative prices faced by those who produce in our country.”
The BCC considers that the current economic situation in Argentina is mainly due to the government economic failures “inflation above 120% per year, poverty above 40% and an overwhelming shortage of international reserves in the Central Bank.”
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“The government, with these measures, gives one more example that its main objective is to kick the problems forward without showing any intention of solving them. The way to overcome Argentina’s economic problems is no longer state interventionism in the economy with exchange controls such as the clamp on the dollar, price controls, export bans and import restrictions.” says the statement that warns that society is paying the costs of ill-advised policies.
Furthermore, he explains that the covert devaluation, achieved through special regimes for some exports and new taxes on imports, is a long way from correcting the enormous exchange rate gap. Consequently, the BCRA continue to lose international reserves that are already at a record low (– USD 8,000M).
The organism warns that kicking the problems forward will be a more serious problem for the government that will continue “The tax advance reduces next year’s collection, not correcting exchange imbalances aggravates the loss of reserves and places the costs of the correction on the incoming government. In addition, debts continue to accumulate due to the dollar loans that importers owe to their foreign suppliers, which already total approximately USD 12,000 million.”