Martín Guzmán assured businessmen that there will be no devaluation jump in 2021

Martín Guzmán assured businessmen that there will be no devaluation jump in 2021

The Minister of Economy, Martín Guzmán (EFE / Juan Mabromata / File)
 

The Minister of Economy Martin Guzman He assured that one of the objectives of the economic policy of the national government is that inflation and the value of the dollar “go hand in hand” and anticipated that the goal is that by the end of 2021 the real exchange rate is similar to the one registered at the end of last year. In this way, he ruled out a devaluation jump for the year that begins.

Guzmán left these definitions this noon during a closed-door meeting in Entre Ríos in which the governor participated Gustavo Bordet, the holder of the Interior portfolio Eduardo “Wado” by Pedro and business leaders from the SME, pig, poultry, agricultural, dairy and tourism sectors convened especially.

When referring specifically to the exchange policy, he stated: “We aim to give stability to the real exchange rate (so that) the dollar and inflation go hand in hand. The objective defined for the end of 2021 is for the real exchange rate to be similar to that of the end of 2020 ”. In other words, he assured that the Government does not plan to devalue

Today the Indec will be publishing the inflation data for December “which will be around 4%,” said Guzmán.

Gustavo Bordet (Julieta Ferrario)

Gustavo Bordet (Julieta Ferrario) 

“You have to understand what are the forces that determine this dynamic. We are going to end up with an interannual inflation from December ’19 to December ’20 of around 36%, which implies an approximate decrease of 17 percentage points with respect to last year “, he highlighted.

The official noted that towards the end of last year “some regulations were relaxed.”

“It is also important to maintain incentives for production. We understood that the combination of price regulations, more seasonal issues, plus what has been going on in terms of the evolution of international prices and how it affects the price of commodities and the values ​​of the production chain were going to generate inflation at the levels at which it will close, higher in the last quarter of 2020, ″ he stated.

“We must continue on this path of reducing inflation”, he pointed out, after which he affirmed: “It would be a mistake to extrapolate that to 2021, what we have proposed is a comprehensive macro scheme in which inflation continues to fall, approximately around five percentage points per year, in a way consistent”.

We aim to give stability to the real exchange rate (so that) the dollar and inflation go hand in hand. The goal defined for the end of 2021 is for the real exchange rate to be similar to that of the end of 2020 (Guzmán)

Inflation “is attacked with a comprehensive macroeconomic strategy that has multiple dimensions: exchange rate policy, fiscal and monetary policy, rate policy, also one of the key prices in the economy, and price and income policies in that the State has a fundamental role in managing the coordination of expectations ”, he specified.

“We must go at a speed that the economy can sustain, depending on what we are facing in fiscal terms, what the financing needs are and depending on what all this management of coordination of expectations is,” he said.

Before, Guzmán had assured that one of the great issues of economic policy management “is the definition of priorities for economic recovery and that this recovery can be sustained over time.” “We have drawn up a macroeconomic, monetary, fiscal and financial program of which the 2021 Budget is the heart, which is aimed at promoting recovery throughout the territory and sowing conditions for stability”, he stated.

“The Budget goes in the direction of putting accounts in order to build conditions of stability and predictability,” he said.

Claims

In the interventions they had during the talk held at noon with the national ministers at the provincial Convention Center, the different productive sectors had a generalized approach in addition to the sectoral ones: tax pressure.

“When we talk about tax pressure, we also talk about unproductiveness, lack of productivity to be able to export. The industry has always been competitive to export because of the exchange rate that generates more poverty, let’s say things as they are ”, the head of the Entre Ríos Industrial Union told Guzmán, Leandro Garciandía. The factory leader pointed out that the industry needs infrastructure and tax conditions to compete and not only devaluations that improve the exchange rate by reducing the purchasing power of people with fixed incomes.

We must go at a speed that the economy can sustain, depending on what we are facing in fiscal terms, what the financing needs are and depending on what all this management of coordination of expectations is (Guzmán)

“Today being able to export is a problem, each administrative step that must be taken is a problem,” he added, while demanding “predictability and clear rules of the game.” Another of the claims he made was for the teleworking law, which he described as “very bad.”

While, Elvio Guide, a benchmark for the Argentine Agrarian Federation, took the opportunity to question the decisions on corn made by the national government in recent weeks, which went from the export ban to the lifting of that restriction. Guide clarified that the field “is no one’s enemy” and reminded him that the oilseed production went from 30 to 55 million tons in 2015 to the last harvest, while questioning the untimely decision to block the sales abroad.

At the time of refunds, the Minister of Economy acknowledged that the current tax scheme is the consequence of “multiple emergencies”, but conditioned its restructuring to the care of “fiscal sustainability”, after which he cited the reduction of withholdings to the economies regional as an important step. “We need to strengthen the collection,” he clarified.

He told the businessmen that the government’s objective is to carry out a process of stabilization of the economy. “Reassure her” was the word he used.

In that sense, he described a series of guidelines to achieve the goal. In the first place he put inclusion, so that the economic structure gives opportunities to all social sectors; then the productive dynamism, that the productive structure adds value; thirdly, stability, for which “macroeconomic conditions of a certain order” are needed, within which he ordered an increase in exports “consistent with economic growth,” so that the strategy in this sense is federal, so that throughout the country “People have the possibility of working with dignity”, and “sovereign, that we can choose our own destiny,” he added.

He also mentioned the need to achieve a speedy economic recovery and that this rebound “can be sustained over time.”

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