Connect with us

Popular World News

Argentina Treasury Minister defends use of central bank reserves: local media By Reuters

Argentina Treasury Minister defends use of central bank reserves: local media By Reuters


Argentina Treasury Minister defends use of central bank reserves: local media By Reuters


By Jorge Otaola

BUENOS AIRES (Reuters) – Argentina´s newly appointed Treasury Minister Hernan Lacunza defended the use of Central Bank reserves to ward off further depreciation of the peso following presidential primaries earlier this month, according to interviews published in local media on Sunday.

“There´s no point in having these reserves if the dollar is flying off like a kite,” Lacunza said in an interview with local daily La Nacion. The country´s top finance official also told news website Infobae that “the reserves are there to be used.”

Lacunza, who was sworn in as Treasury Minister last Tuesday, gave several interviews to local media outlets on Friday.

His appointment followed incumbent President Mauricio Macri’s trouncing in the primary election on Aug. 11 by Peronist Alberto Fernandez, who is now the front runner for the October presidential election.

Fernandez’s landslide support in the primary vote prompted the peso currency to plummet 18% in the last two weeks amid fears of a return to the interventionist economic policies of former President Cristina Fernandez de Kirchner, who is Fernandez’s vice presidential candidate.

Argentina´s Central Bank has tapped into $7 billion worth of reserves since the primaries, according to provisional bank statistics, as the bank has paid off debt and sold dollars in an effort generate liquidity amid fears of further depreciation.

“We are not going to leave scorched earth behind for those who follow us,” Lacunza told the weekly Perfil.

Argentina´s first-round presidential election is slated for October 27, with an eventual run-off scheduled for the end of November. The president-elect would take office on December 10.

“The election is no excuse to risk stability,” Lacunza told La Nacion.

The International Monetary Fund sent a team this weekend to meet with the economic advisers to Macri and Fernandez to “exchange views.”

The center-left Fernandez has criticized the $57 billion standby agreement Macri struck with the IMF in 2018, pledging to “rework” the deal if elected, but has also promised that Argentina has “no possibility” of default if he is elected.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!