The Argentine economist Antonio Aracre, recognized for his career in companies like Syngenta and for having been Chief Adviser to President Alberto Fernández, offered an optimistic analysis regarding the elimination of currency controls by the national government. During an interview with Rivadavia AM 630, Aracre highlighted that Argentina's stronger trade balance indicates a trend towards a less expensive dollar.
Aracre explained that the discontent in the agricultural sector is mainly due to the drop in international prices and not so much to local policies. He also warned about the underestimation of consumption by not considering the online channel. Regarding inflation, he downplayed recent fears, attributing the 3.7% rise in March to devaluation expectations that did not materialize.
The economist pointed out that the key to the success of the current economic plan lies in a fiscal surplus, the accumulation of reserves, and a structural change in the country's productive matrix, driven by the energy and mining sectors. He highlighted the possibility of a "neoconvertibility" in Argentina, a stable and free exchange rate system without the restrictions of the past.
Aracre emphasized that the Argentine economy could be heading towards a more robust convertibility, supported by favorable conditions but affected by falling commodity prices and climatic effects. In terms of wages and consumption, he mentioned that until January the purchasing power surpassed previous levels and supermarket consumption showed year-on-year growth.
In reference to the unification of the exchange rate, Aracre highlighted that it should be received with gratitude by the sector in normal conditions. However, factors such as price drops and climatic effects have impacted profitability, especially for those who rent land. He stressed that the future of monetary stability depends on reducing country risk and the potential refinancing of maturities without resorting to reserves.
