The Central Bank replied to Sandleris for the fall in reserves and foreign currency flight

The Central Bank replied to Sandleris for the fall in reserves and foreign currency flight


Government and opposition maintain political crossovers after Monday’s mobilization but also economic ones. President Alberto Fernández pointed against the management of Mauricio Macri due to the departure of reserves from the Central Bank (BCRA), which led to a response from the last of the three holders of the monetary authority during the previous government, Guido Sandleris. Now it is the turn of the Central Bank that directs Miguel Pesce, which, through a report, maintains that reserves only grew due to indebtedness and speculative capital income between 2016 and 2018.

“In the period between December 2015 and October 2019, the Formation of External Assets exceeded US $ 86,000 million”, they support the BCRA data on what is commonly called “capital flight” -although not all foreign asset formation is flight-.

According to that report, “the government of Mauricio Macri accumulated a deficit in the current account of the balance of payments in the four years of his administration, totaling a red of US $ 76,223 million, therefore, the BCRA’s reserves only increased with indebtedness and income from portfolio investments that, when they were withdrawn, caused a devaluation of the currency and generated a deep recessive process in economic activity. “

When we arrived in December we found a languid Central Bank, without reservation, empty, ”said Alberto Fernández. But this is false. We leave far more bookings than we receive, “wrote Sandleris, who returned to the Universidad Torcuato Di Tella after public management. The former official also pointed to the “inheritance” the fall in reserves before the arrival of Macri. “Gross reserves on 12/10/2019 were US $ 43,785 million while on 12/10/2015 they were US $ 24,862 million. Net reserves exceeded US $ 13,000 million on 12/10/2019, while they were null in 2015 “, he remarked.

PASO. In an interview with The Rocket to the Moon, Fernández emphasized the fall in reserves after STEP -the simultaneous and compulsory open primaries-, when as a candidate of the Frente de Todos he beat Macri de Juntos por el Cambio by 47% against 32% of the votes, a difference of 15 points.

Thus, in 2019 “US $ 7,184 million of speculative capital left the country. The balance was a fall in reserves of US $ 21,305 million,” analyzed the current management of the Central Bank.

“It is true that the drop in gross reserves between the PASO and the general elections was close to USD 23,000M, but it is false that this amount was used to defend the exchange rate, “added Sandleris, who indicated that US $ 8,000 million went to the payment of debt via the Treasury and another US $ 7,000 million for outflow of deposits.

“In 2019, the weight of public debt reached an incidence of 90% of GDP and its interests committed more than 20% of tax resources. Debt denominated in foreign currency represents 5.6 times the value of international reserves held BCRA and 3.8 times the amount of annual exports of goods. The other side of this phenomenal debt was a bulky capital flight, “remarked a spokesman for the Monetary Authority.

For the Financial Times, “Argentina is heading for a new devaluation”

In 2016, reserves grew by US $ 14,311 million, the Central recapitulated, although it considered that “only product of indebtedness: speculative capital entered for US $ 35,255 million.” In 2017, with the recovery of activity, the current account closed with a deficit of US $ 30,792 million. Reserves grew by US $ 14,556 million, “again as a result of the inflow of speculative capital for US $ 34,661 million.” In 2018 the capital outflow began, which was offset by the proceeds of the US $ 44 billion from the International Monetary Fund plus other organizations, according to the balance made by the Central, which thus got into the crossroads between the ruling party and the opposition.



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