Deplorable rumour

Portada en Ingles

Neither a figment of neoliberal imagination nor the 90's economists.

Honestly, rumours arise from wish (either explicit or not) of government's closest economists, who, among other pieces of advice, suggest it's convenient to make a "service". Those knowing how to read see in the word "service" an eventual devaluation.

Simultaneously, Argentine Central Bank (BCRA, in its Spanish acronym) has let dollar rise in the last week (and we could even say that it's pushing it), probably accompanying complaint of those saying that it's not convenient for exporters.

Because of those signs, market participants are talking about splitting of real exchange, whereby those exporting would collect better dollars and imports and hot money would be discouraged (at the same time, treasury revenues would be higher). It entails exchange control. Others imagine a slighter retouch in exchange rate with greater price and wage control so as to return it to 2007 fourth-quarter values, proposal which would not affect BCRA's role.

It's embarrassing to see this issue mentioned again and that reference is made to already obsolete instruments. Yet, that's what's heard in market today. It would be treason not to mention it, though such measure is not backed. What's deplorable is the existence of so many crossed messages, like in clash with farm.

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