Economy Minister Luis Caputo has stated that strict control over the amount of pesos in circulation could generate some volatility in the exchange rate but ruled out the possibility of a shock occurring in the future. Caputo defended the current economic scheme and assured that the Government must focus on reducing costs, taxes, and burdens to address production problems in Argentina.
In the midst of this debate, economist Ricardo Delgado expressed his opinion on the value of the dollar and warned political figure Javier Milei about a mistake that, according to him, both Cristina Kirchner and Mauricio Macri made during their presidencies. Delgado highlighted that all governments, from Kirchner to the present, have had a tendency to maintain a cheap dollar, which has led to increased costs in national production.
According to Delgado, it is complicated to determine whether there is an exchange rate lag in Argentina and what would be the best official dollar rate to ensure productivity in the country, especially considering the debt with international organizations and the private sector. The economist pointed out that falling in love with a cheap dollar can lead to problems and increase production costs in Argentina, warning that devaluation is not the solution.
Delgado compared the current exchange scheme with that of previous administrations and concluded that maintaining a cheap dollar, as Kirchner and Macri did, could have negative consequences for the country's economy. Despite the divided opinions among specialists and the Government regarding a possible devaluation, Delgado insisted that falling in love with a cheap dollar is not a viable long-term strategy.
