“The demand for labor does not depend on laws, but on profitability,” the economist emphasized. He stressed that “for money to stay in Argentina (and for dollars not to leave the country), there must be businesses.” “First and foremost, you need profitability and a business. Labor laws help to facilitate things once you have the business and the investment,” he insisted. Szewach said that “we should not have great illusions about a tax cut until there is a change in the Nation-Provinces relationship” and pointed to the continuity of gross income, the main source of revenue for subnational states. “A budget is needed, modernizing labor relations and cleaning up the tax issue, but it is not a panacea, there are no magic solutions,” he insisted. Regarding the economic growth data released yesterday, INDEC noted the “distortion” between sectors, citing winners such as energy and banking. Argentina is a country where laws are optional, or court rulings are not enforced. Buenos Aires, November 26 (NA) – Economist Enrique Szewach stated that “it is better for the dollar to be near the top of the band” and considered that the floating band scheme should be modified to be sustainable with the greater demand that will occur in the coming months. Regarding the dollar's rise at the beginning of the week, he stated that “in a free market there is more demand than supply, and besides, we don't know if the Treasury intervened.” “We should not worry. I would worry about the opposite case because we need to maintain a competitive dollar. It is better for it to be near the top,” said the former director of the Central Bank. In dialogue with Radio Rivadavia, he marked that “it will be necessary to rethink” the calibration of the bands and evaluated that “a realignment is expected.” To date, the ceiling of the band is $1,508.98 and the floor is $927.08, as verified by the Argentine News Agency with the Central Bank. Asked about the comfort that the Government expresses with the current design, he was categorical: “I would not base myself on what the Government said because it has changed a lot.” Likewise, he emphasized that although labor and tax reforms are important for Argentina, what is important is that “there are profitable businesses” so that later “a businessman can evaluate whether to hire a person and under what conditions.” “The reforms are necessary and would give a very strong signal of governability.”
