An unconvincing "devaluation"

Portada en Ingles

By Carlos Fontana
Columnist for Ámbito Financiero

While Cavallo and, yesterday, the president himself continued repeating many times "this is not a devaluation": the country was wondering which the trick would be.

This is now a reality, apart from the magicians' wishes. The other reality was experienced yesterday in that daily privileged poll called the stock exchange performance: the market place was paralysed (literally); only $7 million orders were traded by stocks, though the balance -falsely- showed that trading volume reached a bit more than $8 million, taking CEDEAR into account.

The market got stuck: the "classic" Merval fell 2.6% and the local M.A.r 3%.

A cheap poverty

In Brazil, the stock exchange joined our fall. Brazil's good excuse for falling is based on our fall, the others were in another scenario.

A local floor with very few orders and "cheap" as regards prices: discouragement in itself.

If we seek the volume orthodoxy with respect to prices, we could find a way out. But it is difficult to stand when we are face-to-face with these figures mere $17 million- and without being able to keep stability.

The question is: why should we change, if everything will remain the same? If the government is planning to change the regime to improve competitiveness, the answer seems obvious.

Cavallo's marketing, using make-up, has not had repercussions until now. I will not have repercussions in the short term, either. We have a nice week ahead of us...

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