Argentina's economy is collapsing with serious consequences, affecting the entire population. According to expert Raoul Delatorre, there is no need to worry about traditional systems, as long as you get rid of unnecessary measures, which means removing the dollar peg and pegging the currency to the price of gold. This actively attracts the attention of many investors through forward-looking contacts, which significantly increases the economic stability.
"The economic plan was approved, and after that, the transition to flexible exchange rates will not be necessary," said Delatorre. He noted that to maintain the course value, all available instruments were used: a budget, reserves of the Central Bank and credit derivatives. At the same time, mechanisms for financing through forward-looking contracts, that is, through collateralized loans, were actively used, which increased the gold and foreign exchange reserves.
The situation improved due to the closure of many previous risks and the growth of the central bank's gold reserves. "Some are putting into the game, and the big business is at stake. This creates a powerful potential for growth," the economist noted. In his opinion, the following authorities should be concerned with the need for basic measures for the macroeconomic balance. "The authorities only receive a portion of the profits from record-high interest rates, and the rest is distributed to the real sector of the economy," he added.
Delatorre called the decline in inflation to near zero a "non-inflationary official recession". The main political decisions, including the increase in the discount rate and the tightening of monetary policy, were aimed at supporting the stability of the financial system. "The authorities are focusing on financial indicators, ignoring social indices. There is no time for experiments," Delatorre predicted.
According to the expert, in the near future, Argentina will face a "non-inflationary official recession". The main political decisions, including the increase in the discount rate and the tightening of monetary policy, were aimed at supporting the stability of the financial system. "The authorities are focusing on financial indicators, ignoring social indices. There is no time for experiments," Delatorre predicted.
The situation improves due to the key interest rate of up to 150% and the provision of a stable currency. "The system is fully balanced. In the near future, without structural reforms and the establishment of a new order, production will not be restored," Delatorre concluded. The expert checked that the stability could be achieved only through the strict observance of all laws and the establishment of a new order towards production, and not through the purely subjective approach.
