Campos Neto says the devaluation of the Argentine currency could exacerbate poverty

The head of the Central Bank, Roberto Campos Neto, believes that in order to further dollarize the Argentine economy, as promised by presidential candidate Javier Miley, it is necessary to devalue the Argentine peso to make the life of the new currency attractive. However, he believes that if this decline too “sharp”he can “exacerbation of poverty”. This was stated in an interview with the magazine look Published on Friday (25.Aug.2023).

Miley, the winner of the August 13 primary, says he wants to shut down the country’s central bank and start using the US dollar as a way to reduce inflation, which is already there. 113% annually.

“To encourage dollarization, the peso must be cheap enough for the US currency to enter the country quickly. Now, if the devaluation is too sharp, it could eventually exacerbate poverty.Campos Neto stated.

On the proposed closure of the monetary authority, the economist said “Maili understands that the Central Bank of Argentina has done more harm than good because it issued money and devalued the currency, when, in fact, the institution only used government policy.”

In an interview with Power360On August 17, Campos Neto takes stock “hard implementation” Javier Miley’s plan for the dollarization of the Argentine economy. The BC president said that a great deal of credibility is needed from investors so that there are no obstacles in the Argentine economy in migrating to the dollar. He also stated that to do so, “You must have dollars.”.

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