Former Economy Minister Domingo Cavallo criticized current Economy Minister Luis Caputo over the exchange rate band system and the lack of accumulated reserves to intervene in the dollar market if its price rises and exceeds the band's ceiling.
«Who is going to believe (Luis) Caputo when he says they will guarantee the band's ceiling if they don't have the dollars to intervene if it goes above it?», the former official stated during the annual conference of the Latin American Economic Research Foundation (FIEL).
The former Economy Minister stated that the Government must define the monetary, exchange rate, and financial system it will implement in a way that «allows us to understand how the exchange rate and monetary policy will be managed and how the financial system will function».
He also indicated that an economic reform is needed «to define the rules of the game» in the same monetary, exchange rate, and financial sense.
«You can't say you are going to move towards eliminating privileges and try to promote investments with a regime that gives a series of guarantees to large investments that the rest of the economy does not have», warned the former minister under Carlos Menem and Fernando de la Rúa.
Domingo Cavallo during the FIEL annual conference. Photo: Agencia Noticias Argentinas / Screenshot.
In this sense, he expressed his concern about the benefits received by RIGI investments: «Large investments are guaranteed that there will be perfect capital mobility and that they will have access to export exchange rates with total freedom. Why not give that benefit to the entire economy? That means the complete elimination of the clampdown and exchange controls».
In another part of the panel, he referred to the accumulation of reserves by the Central Bank (BCRA), and considered it «something inescapable» that the Government must do.
«No matter if Donald Trump (President of the United States) and Scott Bessent (US Treasury Secretary) are behind it, it is something that the Government inevitably must do».
Cavallo participated in the panel alongside former Economy Minister Nicolás Dujovne and national deputy Ricardo López Murphy.
